Keppel Reit prices S$150m subordinated perps at 3.15%, consolidate these with earlier tranche

KEPPEL Reit's trustee has priced S$150 million of fixed-rate subordinated perpetual securities at 3.15 per cent, the real estate investment trust (Reit) manager announced on Wednesday.

These will be consolidated and form a single series with the existing S$150 million perps issued on Sept 11.

The new perps are expected to be issued on Oct 7, and listed on the Singapore bourse on or around Oct 8, the Reit manager said.

They will be issued in denominations of S$250,000 or integral multiples. Being perpetual, these securities have no fixed final redemption date.

Net proceeds from this issue, after the deduction of issue expenses, will be used by the Reit's trustee towards financing or refinancing acquisitions and/or investments as well as asset enhancement works.

Proceeds will also be used for on-lending to any trust, fund or entity or for financing the general working capital purposes of the group or refinancing the borrowings of the group.

Keppel Reit will issue the perps under its S$1 billion multicurrency debt issuance programme. OCBC has been appointed as the sole lead manager and bookrunner of the offering.

Units of Keppel Reit closed at S$1.07 on Wednesday, down S$0.02 or 1.8 per cent.