Keppel Reit trustee prices S$100 million perpetual securities at 3.28%
The securities are expected to be issued on Nov 27
[SINGAPORE] The trustee of Keppel Real Estate Investment Trust (Keppel Reit), HSBC Institutional Trust Services (Singapore), on Wednesday (Nov 19) priced its offering of S$100 million worth of subordinated perpetual securities at 3.28 per cent, under a S$2 billion multi-currency debt issuance programme.
The securities are expected to be issued on Nov 27, at an issue price of 100 per cent of the principal amount and in denominations of S$250,000, said the Reit’s manager in an announcement posted on the local bourse.
DBS Bank and OCBC were appointed joint lead managers and bookrunners of the offering.
Net proceeds from the issue will go towards financing or refinancing Keppel Reit’s acquisitions and investments, as well as asset enhancement works initiated by the trustee or any trust, fund or entity it has an interest in.
The proceeds will also be used for on-lending to any trust, fund or entity in which the trustee has an interest; financing the general working capital purposes of the Reit and its subsidiaries; and refinancing the borrowings of the group.
Distribution payments are at a fixed rate of 3.28 per cent per annum, payable semi-annually in arrears till Nov 27, 2029, after which the rate will reset.
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Units of Keppel Reit ended Wednesday flat at S$1.05 before the announcement.
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