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Frasers Property unit to issue S$200m fixed-rate subordinated perps above par

FRASERS Property’s wholly owned subsidiary, Frasers Property Treasury (FPT), is proposing to issue S$200 million of fixed-rate subordinated perpetual securities at above par, according to a bourse filing late on Tuesday night.

These will be consolidated with the earlier S$400 million 4.98 per cent subordinated perps issued on April 11 to form a single series, under the group's S$5 billion multicurrency programme.

Net proceeds from this issue will be used for general corporate purposes and refinancing requirements of Frasers Property and its subsidiaries.

The new unsecured perps are expected to be issued on July 30, at 100.527 per cent of par value plus accrued interest from April 11 to (but excluding) July 30.

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The coupon is fixed at 4.98 per cent from April 11, 2019, but from April 11, 2024 onwards, the coupon will be the prevailing five-year Singapore dollar swap offer rate plus the initial spread of 3.04 per cent per annum plus a step-up margin of 1 per cent per annum.

Being perpetual, these securities have no fixed final redemption date.

They will be guaranteed by Frasers Property.

OCBC is the sole global coordinator, lead manager and bookrunner for the S$200 million perps.

Shares of Frasers Property ended flat at S$1.85 on Tuesday.