Mapletree Industrial Trust prices S$300m perps at 3.15%

ME8U : ME8U 0%'s trustee on May 3 priced S$300 million of perpetual securities at 3.15 per cent.

In a bourse filing on Tuesday morning, MIT's manager said its inaugural perp issuance drew "strong participation from a broad spectrum of investors", resulting in oversubscription which led to a tighter price from the initial guidance of 3.375 per cent.

Rated 'BBB-' by Fitch Ratings, the Series 002 perpetual securities will be issued under MIT's S$2 billion euro medium term securities programme. They are expected to be listed by May 21, 2021.

The issuance is projected to lower MIT's aggregate leverage ratio to 36 per cent, from 40.3 per cent as at March 31, 2021.

Net proceeds will be used by MIT for its general corporate purposes, including refinancing existing debt.

The first reset of the distribution rate will be on May 11, 2026, with subsequent resets occurring every five years thereafter.

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"The issuance is in line with our proactive capital management strategy to diversify sources of funding. It will strengthen MIT's balance sheet, provide funding for our development project and improve our financial flexibility for investment opportunities," said Lily Ler, chief financial officer of the manager.

The "robust investor support" shown for the issuance "underscores the investor community's confidence in MIT's stable financial profile and resilient portfolio", she added.

MIT units closed S$0.01 or 0.36 per cent higher at S$2.82 on Tuesday.