Keppel Infrastructure Trust to issue S$300m 4.3% perps
THE trustee-manager of Keppel Infrastructure Trust (KIT) on Tuesday proposed to issue S$300 million 4.3 per cent subordinated perpetual securities, under its S$2 billion multicurrency debt issuance programme.
The Series 002 perps are direct, unconditional, subordinated and unsecured. They are expected to be issued on June 9, said the trustee-manager in a regulatory filing on Tuesday.
The coupon is fixed at 4.3 per cent. However, from the first reset date of June 9, 2031 and each date falling every 10 years after, it will be a fixed rate equal to the prevailing 10-year Singapore dollar Swap Offer Rate in relation to the reset date - plus the initial spread of 2.735 per cent and a step-up margin at 1 per cent.
DBS, HSBC, OCBC and Standard Chartered have been appointed as the joint lead managers of the issue.
Net proceeds will be used to refinance borrowings of KIT as well as finance general working capital purposes, capital expenditure and investments of the trust. KIT's borrowings may include those from the banks appointed as the joint lead managers, who will receive a portion of the proceeds from the perp issue.
The trustee-manager said an application will be made to the Singapore Exchange for the permission to deal in, and the listing and quotation of, the Series 002 perps on the bourse.
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Units of KIT closed unchanged at S$0.55 on Tuesday, before the announcement.
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