FRASERS Property late on Thursday (Sep 8) priced up to S$420 million of its 5-year green notes at 4.49 per cent under its S$5 billion multicurrency debt issuance programme, with an upsize option to increase the offer to a maximum amount of S$650 million in the event of oversubscription.
This comes after the group earlier in the day announced plans to offer up to S$375 million of the green notes due 2027.
The higher initial offer size will comprise a public offering of up to S$300 million to retail investors, as well as a placement of up to S$120 million to institutional investors and others. Each tranche represents 71.4 per cent or 28.6 per cent of the initial offer size of the notes, respectively.
The notes are expected to be redeemed on Sep 16, 2027, unless previously redeemed or purchased and cancelled. Noteholders will receive semi-annual interest payments on Mar 16 and Sep 16 each year starting from Mar 16, 2023.
According to Frasers Property, the corporate* green retail note offering represents Singapore's first.
It also marks the group's second retail bond offering issued by its subsidiary Frasers Property Treasury and guaranteed by the group. Full payment has been made for these retail bonds which matured on May 22 this year.
Based on the initial and maximum offer sizes of the notes, Frasers Property is estimating net proceeds to come in at around S$417.5 million to S$648 million. This will be used by the group to finance or refinance eligible green projects that meet criteria in accordance with the issuer's green finance framework.
"We hope the introduction of this inaugural corporate green retail notes issuance in Singapore will help further fuel interest from both retail and institutional investors in green finance," said Loo Choo Leong, group chief financial officer of Frasers Property.
"Proceeds from this issuance will help us to finance our sustainable property assets," he added.
The public offering opens from 9 am on Friday and will close at noon, Sep 14. Retail applications may be made through the ATMs of participating banks DBS (including POSB), OCBC and UOB, through their internet banking websites or the mobile banking interfaces of DBS, POSB and UOB.
The notes are not intended to be sold to retail investors in the European Economic Area, nor in the UK.
DBS, OCBC and UOB are the joint lead managers and bookrunners of the offer, while OCBC has been appointed green finance adviser.
Shares of Frasers Property ended Thursday S$0.02 or 1.9 per cent higher at S$1.08, before the news.
Amendment note: An earlier version of this article mentioned the offer as Singapore's first green retail note. It is Singapore's first corporate green retail note offering, as Singapore's first retail green bond was launched by MAS on Aug 4.