The notes were issued by wholly-owned subsidiary ICPF Finance Pty Ltd and this one-notch uplift over the long-term corporate credit rating on ICPF reflects overcollateralization of pledged assets to secured debt.
Proceeds from the initial MTN issue will be used to refinance and cancel an equivalent amount of funding under ICPF’s existing $A350 million bank loan facilities.
“Furthermore, we expect the utilization of funds from future potential issuance under the program will be consistent with the ICPF’s stated investment mandate and capital-structure policies,” S&P credit analyst Craig Parker and Jennifer Wee said.
“The rating on ICPF, an unlisted Australian-based wholesale property fund, reflects our view of the fund’s high-quality and well-located portfolio of office assets, conservative investment and operating strategy, and moderate financial policies.
“These strengths mitigate the risks associated with the fund’s exposure to cyclical office property markets, ongoing refurbishment and potential development plans, and higher debt costs,” they concluded.
Australian Property Journal
