• Dexus successfully priced A$500 million subordinated notes issue
• Notes include A$250 million floating rate and A$250 million fixed rate tranches
• Notes will receive 50% equity credit from rating agencies
• Enhances financial flexibility to pursue investment opportunities

Dexus (ASX: DXS) has announced that it has successfully priced an A$500 million subordinated notes issue ('Notes') in the domestic Australian fixed income market, following strong demand from new and existing investors. The Notes reflect an implied yield of 5.48% based on current 3-month BBSW across two tranches, comprising A$250 million 30-year floating rate notes with a non-call period of 5.25 years at a margin of 1.75% over 3-month BBSW, and A$250 million 30-year fixed rate notes with a non-call period of 8.25 years at an initial coupon of 6.30%, that has been swapped back to floating to reflect the initial margin of 1.85% above 3-month BBSW. The Notes do not contain any equity conversion features and are callable in March 2031 and March 2034, respectively. The Notes will receive 50% equity credit from Standard & Poor's and Moody's Investors Service credit rating agencies. This capital management initiative will provide enhanced financial flexibility to pursue investment opportunities in line with strategy while ongoing capital recycling is underway. Investments will be considered in a disciplined manner to maintain balance sheet strength. In addition, the Notes will further diversify Dexus's funding sources and extend its debt maturity profile.