AA Reit to raise S$100m from 3.6% notes due 2024

AIMS Apac Reit (AA Reit) on Tuesday said it will issue S$100 million of 3.6 per cent notes due November 2024, as part of its S$750 million multicurrency debt issuance programme.

The Series 001 notes will be issued at par, in denominations of S$250,000. The five-year notes will bear a fixed interest rate of 3.6 per cent per annum, payable semi-annually in arrear, the manager said.

These notes are expected to be issued on Nov 12, and to mature on Nov 12, 2024.

Koh Wee Lih, chief executive of the manager, said the Reit (real estate investment trust) was pleased to receive "strong interest" from its debt investors, and that the issuance would provide further "balance sheet flexibility and strength".

He added: "Net proceeds arising from the issue will be used for general corporate purposes, including to finance general working capital, capital expenditure and investments, and the partial or full refinancing of existing borrowings."

Following the issuance, AA Reit's weighted average debt maturity will increase from 2.3 years to about 2.9 years on a pro-forma basis, the manager said.

Standard Chartered Bank and United Overseas Bank are acting as joint lead managers and joint bookrunners for the issue of the notes, which are the first to be issued under the Reit's debt programme established in November 2018.

Units in AA Reit closed at S$1.40 on Tuesday, up 1.5 per cent, or two Singapore cents.