MAPLETREE Logistics Trust (MLT) plans to issue S$250 million of fixed-rate perpetual securities, its real estate investment trust (Reit) manager said on Monday.
DBS Bank and OCBC have been appointed as joint lead managers and bookrunners for the issue of the securities.
The net proceeds arising from the issue of the securities, after deducting issue expenses, will be used for general corporate funding purpose, including but not limited to the funding of potential acquisitions and asset enhancement initiatives.
The securities, to be issued in denominations of S$250,000, will be perpetual and will confer a right to receive distribution payments at a rate of 4.18 per cent per annum. The first distribution rate reset falls on Nov 25, 2021, and subsequent resets occur every five years thereafter. The distribution will be payable semi-annually in arrear on a discretionary basis and will be non-cumulative.
These perpetual securities are expected to be issued on or around May 25, subject to the satisfaction of customary closing conditions.
MLT is among some existing issuers of perpetual Singapore debt callable in 2016-2017, making them potential refinancing candidates or perpetual bond issuers this year. It had sold some S$350 million worth of perpetual securities in 2012 with a coupon of 5.375 per cent.