Citic Envirotech prices S$240m of perpetuals at 3.9% coupon; 238bps over SOR

CITIC Envirotech has priced S$240 million of perpetual securities at a coupon of 3.9 per cent, representing an initial spread of 238 basis points over the three-year Singapore dollar swap offer rate.

The securities, which are issued under the water and waste treatment specialist's US$1.5 billion multicurrency programme, were sold at 100 per cent of the principal amount.

They are callable by the issuer on the third anniversary at 100 per cent of par, and the distribution rate will be reset every three years. If the securities are not called, a step-up margin of 500 bps will be added to the distribution rate.

Citic will use the proceeds to refinance existing debt and for general corporate purposes.

DBS, Barclays and Citic CLSA are the joint bookrunners, with DBS also holding the role of sole global coordinator.