Coles (ASX: COL) just announced it has priced $600 million from the Australian debt capital markets.
After 10 years being owned by Wesfarmers, Coles Group was split from the broader Wesfarmers conglomerate (which owns Bunnings Warehouse) in November 2018. However, the Coles name has operated in Australia for 100 years. Today Coles is one of the largest retailers in the country, serving 21 million customers per week across its supermarkets, Coles Express, Online, Vintage Choice and others.
Why Coles Just Tapped The Debt Markets For $600 Million
Coles announced on Wednesday evening it has priced $600 million of fixed rate Australian dollar medium term notes, $300 million being seven-year notes at 2.2% and $300 million being 10-year notes at 2.65%. Settlement is expected to occur on 6 November 2019.
The Coles Chief Financial Officer Leah Weckert said: “Coles is very pleased that our entry into the debt capital markets has been strongly received by Australian and Asian debt investors.”
The supermarket company, which this week announced its September 2019 quarter sales update, said the proceeds will be used to replace some of the bank debt facilities that were established at the time of the demerger from Wesfarmers (ASX: WES).
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