Keppel Corp prices S$400m 2.9% subordinated perps

KEPPEL Corporation announced on Tuesday the pricing of S$400 million in aggregate principal amount of 2.90 per cent subordinated perpetual securities.

The securities will be issued in the denomination of S$250,000, with no fixed redemption date and will confer a right to receive distribution payments.

The distribution rate will be 2.9 per cent per annum from Sept 16, 2021 to Sept 16, 2026, which is the first reset date. From the first reset date and every five years after that, the relevant reset distribution rate will be the reference rate with respect to the reset date, plus the initial spread of 2.097 per cent and the step-up margin at 1 per cent per annum.

The distribution will be payable semi-annually in arrear and will be cumulative.

The company may redeem the securities in whole, but not in part, at 100 per cent of their principal amount, together with distribution accrued on Sept 16, 2024 - the first call date - and each distribution payment date subsequently.

The net proceeds from the issue of the securities will be used by the company for general corporate and working capital purposes including refinancing of existing debts.

The securities are expected to be issued on or around Sept 16, 2021.

DBS Bank, OCBC and UOB have been appointed as joint bookrunners and lead managers for the issue of the securities.