Cromwell E-Reit prices 200m euro notes due in 2025 at 2.125%

A SUBSIDIARY of Cromwell European Real Estate Investment Trust (Cromwell E-Reit) has priced a new tap issue of 200 million euros (S$321.3 million) of existing senior unsecured notes due 2025.

They will bear a coupon rate of 2.125 per cent while the reoffer yield will be 1.6 per cent, payable annually in arrears.

The new notes will be issued under Cromwell E-Reit's recently established 1.5 billion euro medium-term note programme, after which they will be consolidated and form a single series with the existing offering of 300 million euros of five-year senior unsecured notes issued in November 2020.

Net proceeds from the issuance will be used to refinance existing debt and for general working capital purposes, said the Reit manager on Thursday morning.

The new notes are expected to be issued on Jan 27, 2021, and will be listed on the Singapore Exchange on or about the business day after. Cromwell E-Reit's manager will also apply for the notes to be admitted for listing on the Luxembourg Stock Exchange, and for trading on the exchange's Euro MTF Market.

ING Bank's Singapore branch and Morgan Stanley have been appointed as joint global coordinators for the notes, as well as joint lead managers together with Credit Agricole and Standard Chartered. Intesa Sanpaolo was appointed as a passive bookrunner for the notes.

Fitch Ratings Singapore has rated the new notes BBB-, having earlier assigned the trust a long-term issuer default rating of BBB- with a stable outlook.

"I am very pleased that the strong demand from global credit investors for our inaugural bond allowed us to tap the market with this new issue within a very short time span following our inaugural issuance. The positive investor feedback and widespread support we have received are an endorsement of Cromwell E-Reit's track record, recognised corporate governance and risk management processes," said Simon Garing, chief executive of the manager.