OUE unit proposes to issue S$150 million 3.5% notes due 2026

PROPERTY developer OUE, through its wholly-owned subsidiary OUE Treasury, is proposing to issue S$150 million notes with a fixed interest rate of 3.5 per cent per annum due 2026, to be issued under its S$3 billion multi-currency debt issuance programme.

The Series 003 notes will be issued in registered form at an issue price of 100 per cent of their principal amount, and in denominations of S$250,000, the company said in a bourse filing on Tuesday.

The interest for the Series 003 notes will be payable semi-annually in arrear. The notes are expected to be issued on Sept 21 and will mature on Sept 21, 2026, unless previously redeemed or purchased and cancelled.

CIMB Bank Berhad, Singapore Branch and HSBC, Singapore Branch have been appointed as the joint lead managers and bookrunners for the issue of the Series 003 notes.

OUE said the net proceeds from the issue of the Series 003 notes - after deducting issue expenses - will be used for general working capital purposes, general corporate funding purposes including investments and capital expenditure, as well as to refinance the existing borrowings of the group.

Shares of OUE closed flat on Tuesday at S$1.42.