Cromwell E-Reit launches S$750 million multicurrency perpetual securities programme

CROMWELL European Real Estate Investment Trust (Cromwell E-Reit), through its trustee Perpetual Asia, established a S$750 million Multicurrency Perpetual Securities Programme on Friday (Nov 5), the trust announced in a bourse filing after market close.

Under the programme, Cromwell E-Reit will be able to issue perpetual securities denominated in any currency as agreed with the relevant dealer, subject to compliance with all relevant laws, regulations and derivatives.

Perpetual securities have no fixed maturity dates. They may be issued in various amounts, bear fixed or floating rates of distribution, be dual currency and have distributions deferred at the option of the issuer if so provided in the applicable pricing supplement.

Cromwell E-Reit said that net proceeds from the perpetual securities will be used by the Reit and its subsidiaries for the financing and/or refinancing of their acquisitions, investments, enhancement works, borrowings and general corporate purposes, unless otherwise specified.

It added that the programme application has received an in-principle approval from the Singapore Exchange. However, applications will have to be made for permission to deal in, and for quotation of any perpetual securities to be issued in the programme.

DBS and OCBC have been appointed as the programme's arrangers and dealers.

"The Perpetual Securities will be offered in Singapore pursuant to exemptions invoked under Sections 274, 275 and/or any other applicable provision of the Securities and Futures Act, Chapter 289 of Singapore," Cromwell E-Reit said.

Units of Cromwell E-Reit traded 0.78 per cent or 2 euro cents higher at 2.6 euros at Friday's close.