Keppel Reit to issue S$150m 3.15% subordinated perps

KEPPEL Reit's trustee has priced S$150 million of fixed-rate subordinated perpetual securities at 3.15 per cent, the real estate investment trust (Reit) manager announced late on Monday night.

The new perps are expected to be issued at par on Sept 11, and listed on the Singapore bourse on or around Sept 14, the Reit manager said.

Net proceeds from this issue after deducting expenses will be used to refinance the trustee's existing S$150 million, 4.98 per cent subordinated perps.

The issuer may opt to redeem the perps at par in whole, but not in part, on Sept 11, 2025 or on any distribution date thereafter.

Being perpetual, these securities have no fixed final redemption date.

Keppel Reit will issue the perps under its S$1 billion multicurrency debt issuance programme.

OCBC has been appointed as the sole lead manager and bookrunner of the offering.

Units of Keppel Reit closed at S$1.08 on Monday, up S$0.01 or 0.9 per cent.