Keppel DC Reit prices 75m euro 2.61% notes due 2028

A WHOLLY-OWNED subsidiary of Keppel DC Reit trustee Perpetual (Asia), Keppel DC Reit MTN, has priced 75 million euros of fixed rate notes due 2028 at 2.61 per cent per annum.

In a bourse filing on Tuesday (May 10), Keppel DC Reit’s manager said the Series 003 Notes will be issued under the S$2 billion multicurrency debt issuance programme established by Keppel DC Reit MTN.

The notes will be unconditionally and irrevocably guaranteed by Perpetual (Asia). They are expected to be issued on May 17, 2022 and mature on the same date in 2028.

Interest on the notes will be payable semi-annually.

They will be issued at 100 per cent their principal amount, in denominations of 100,000 euros or higher denominations of 1,000 euros.

Net proceeds from the issue will be used for general corporate purposes including refinancing the real estate investment trust (Reit) and subsidiaries’ existing debt, said Keppel DC Reit’s manager.

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DBS has been appointed as the sole dealer and bookrunner for the issue of the notes.

In the event of default where Keppel DC Reit’s manager is removed and the replacement or substitute manager is not appointed according to the terms of the Reit’s trust deed, this may trigger cross defaults in other facilities and debt issues of the Reit and its subsidiaries.

The manager estimates that the aggregate level of facilities and debt issues that may be affected is about S$2.04 billion in such an event.

Units of Keppel DC Reit ended Monday S$0.03 or 1.5 per cent lower at S$2.00.