Ascendas Reit trustee prices 300m euros of 0.75% notes due 2028

ASCENDAS Real Estate Investment Trust's (Ascendas Reit) trustee on Wednesday priced 300 million euros (S$480.8 million) in notes due 2028, the manager said in a bourse filing on Thursday.

The notes, which have a fixed interest rate of 0.75 per cent per annum and a reoffer yield of 0.773 per cent per annum, fall under the Reit's S$7 billion euro medium term securities programme.

The manager expects the notes to be issued on June 23, 2021, subject to customary closing conditions, and mature seven years later. BNP Paribas, HSBC Continental Europe, MUFG Securities Asia and Natixis have been appointed as the joint lead managers for the notes.

Net proceeds from the issue will be used towards financing the Reit's general working capital purposes, including financing or refinancing acquisitions.

Just in May, the manager said the Reit will be buying the remaining 75 per cent equity stake in Galaxis, a business park at one-north, for about S$534.4 million. The manager also announced in March that Ascendas Reit acquired 11 data centres in Europe for S$904.6 million.

The manager does not expect the notes to have a material effect on the net asset value and distribution per unit of Ascendas Reit and its subsidiaries for the current financial year.

Ascendas Reit units closed at S$2.93 on Wednesday, down S$0.07 or 2.3 per cent.