Wellington, Sept 7 NZPA - Goodman Property Trust's manager has completed a $45 million wholesale bond issue, which the company will use to repay bank debt.

Goodman NZ announced the planned issue last Thursday, which it said was in response to inquiry from wholesale investors.

The seven-year bonds will pay six-monthly interest at 7.58 percent per annum, and are rated BBB + by Standard & Poor's.

"The proceeds of the issue to selected local institutions will be used to repay bank debt, further diversifying the trust's sources of funding and extending the weighted average term to expiry of its debt," Goodman NZ chief financial officer George Crawford said.

The issue had no material impact on operational earnings guidance for the current year.

ANZ National Bank was lead manager.

Goodman had bank debt equalling about 37 percent of property assets at the end of March, within banking covenants.

The company completed a $150m corporate issue of five-year bonds at 7.75 percent interest per annum late last year.