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COLES GROUP LIMITED. Capital/Financing Update 2020

Aug 19, 2020

64687_rns_2020-08-19_ff9ee23b-fd2b-4332-977b-8cc1f264d680.pdf

Capital/Financing Update

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20 August 2020

The Manager Company Announcements Office Australian Securities Exchange

Dear Manager,

COLES RE-ENTERS THE AUSTRALIAN DEBT CAPITAL MARKETS WITH LONG DATED MULTI-TRANCHE $450 MILLION TRANSACTION

Please find attached for release to the market. This announcement is authorised by the Board.

Yours faithfully,

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Daniella Pereira Company Secretary

Coles Group Limited ABN 11 004 089 936 800 Toorak Road Hawthorn East Victoria 3123 Australia PO Box 2000 Glen Iris Victoria 3146 Australia Telephone +61 3 9829 5111 www.colesgroup.com.au

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ASX Release

20 August 2020

COLES RE-ENTERS THE AUSTRALIAN DEBT CAPITAL MARKETS WITH LONG DATED MULTITRANCHE $450 MILLION TRANSACTION

Coles Group Limited (Coles, ASX: COL) today announced that its wholly owned subsidiary, Coles Group Treasury Pty Ltd (ACN 628 634 935), has priced $450 million of Australian dollar medium term notes (Notes), comprising $300 million of 10 year fixed rate Notes and $150 million of five year floating rate Notes. The 10 year fixed rate Notes are priced at a coupon of 2.1% and the five year floating rate Notes are priced at a margin of 0.97% over 3M BBSW.

Subject to satisfaction of customary conditions precedent, settlement of the Notes will occur on 27 August 2020.

Coles’ Chief Financial Officer, Leah Weckert, said, “Coles is very pleased with another successful pricing of debt securities, after first entering debt capital markets last year. The demand from Australian and offshore investors and the final pricing demonstrates confidence in our balance sheet and allows us to further diversify our sources of funding and extend the average maturity of Coles’ debt facilities.”

The proceeds from the Notes will be used to replace existing bank debt facilities.

Joint Lead Managers for the transaction were ANZ, Goldman Sachs and SMBC Nikkon.

For more information:

Investors

Mark Howell Mobile: +61 400 332 640 E-mail: [email protected]

Media

Blair Speedy Mobile: +61 431 960 249 E-mail: [email protected]

Coles Group Limited ABN 11 004 089 936 800 Toorak Road Hawthorn East Victoria 3123 Australia PO Box 2000 Glen Iris Victoria 3146 Australia Telephone +61 3 9829 5111 www.colesgroup.com.au