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Perennial Real Estate launches first retail bond offering

Monday, October 12, 2015 - 12:26
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"As part of our proactive capital management strategy, the maiden retail bond offering further diversifies our sources of funding and optimises our capital structure," said Pua Seck Guan, chief executive officer of Perennial Real Estate.

PERENNIAL Real Estate Holdings is offering for subscription S$150 million of three-year retail bonds which carry a fixed rate of 4.65 per cent per annum.

In the event the public offer is oversubscribed, the issuer may increase the total offer size, by up to an additional S$150 million, to S$300 million. Subscriptions under the public offer will be subject to balloting if total subscriptions exceed the offer size.

"As part of our proactive capital management strategy, the maiden retail bond offering further diversifies our sources of funding and optimises our capital structure," said Pua Seck Guan, chief executive officer of Perennial Real Estate.

The public offer will open for subscription at 9am on Tuesday and will close at 9am on Oct 21. The retail bonds are expected to be issued on Oct 23 and are expected to commence trading on Oct 26.

The net proceeds from the issue of the retail bonds are presently intended to be used for general corporate purposes, including refinancing of existing borrowings and financing of working capital, investments (including mergers and acquisitions) and/or capital expenditure requirements of the issuer or its subsidiaries.

DBS Bank is the sole lead manager and bookrunner for the offer.