ESR Cayman to issue S$225m in 5-year senior notes

LOGISTICS real estate giant ESR Cayman, the sponsor of Singapore mainboard-listed ESR-Reit, on Thursday said it will offer S$225 million worth of five-year notes at par.

The senior unsecured notes mature on Feb 26, 2025. They will bear a fixed coupon rate of 5.1 per cent per annum, which is 362.2 basis points above the prevailing five-year Singapore-dollar swap offer rate.

The group plans to use the estimated net proceeds of S$222 million from the notes issue to refinance existing borrowings, fund potential acquisition and investment opportunities as well as for working capital requirements and general corporate purposes.

The notes were launched under ESR Cayman's US$2 billion multicurrency debt issuance programme.

Joint bookrunners Credit Suisse (Singapore), DBS Bank and United Overseas Bank are managing the offer and sale of the notes.

ESR Cayman will apply to list and quote the new notes on the Singapore Exchange. No listing will be sought in Hong Kong.

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None of the notes will be offered to the public in Hong Kong nor will they be initially placed to any connected persons of the company.

Separately, Hong Kong-listed ESR Cayman last month proposed to set up a US$500 million joint venture with Singapore sovereign wealth fund GIC to develop institutional-grade logistics facilities in China.