Frasers Property to redeem S$350m in perpetual securities

FRASERS Property : TQ5 0% is exercising its call option to redeem all S$350 million of its 3.95 per cent fixed-rate subordinated perpetual securities.

They will be redeemed at par with interest accrued on the first reset date on Oct 5, 2022.

The securities were priced and issued in September 2017 under the group’s S$5 million multicurrency programme.

Then known as Frasers Centrepoint, the group first announced the issue of S$308 million of the Series 002 securities by its subsidiary FCL Treasury, which was recently renamed to Frasers Property Treasury.

It proposed to issue a second tranche of S$42 million of the perps later in the month, which would be consolidated to form a single series with the first tranche.

Net proceeds from the deal were to be used for corporate funding requirements of the company and its subsidiaries.

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OCBC was the sole global co-ordinator, lead manager and bookrunner for the deal. 

Frasers Property’s redemption of its perps comes ahead of the securities’ step-up date on Oct 5, 2027, with a step-up margin of 1 per cent per annum.

Shares of Frasers Property closed at S$1.09 on Monday, up S$0.04 or 3.8 per cent.