Mapletree prices S$700m principal amount of 3.95% perpetual securities

A SUBSIDIARY of Mapletree Investments Pte Ltd has launched and priced S$700 million principal amount of 3.95 per cent perpetual securities in what is seen to be the largest Singapore dollar-denominated perpetual issuance this year so far.

So far, orders worth over S$1.9 billion have been received by Mapletree, it said in a statement on Thursday night. This translates into a subscription rate of 2.7 times, with participation from more than 70 investors.

The securities, launched by Mapletree Treasury Services, are to be issued pursuant to its US$5 billion Euro Medium Term Note Programme. The securities will be unconditionally and irrevocably guaranteed by Mapletree.

The securities will be issued in denominations of S$250,000, and will be perpetual.

They are first callable at Mapletree Treasury Services' option on Nov 12, 2022, and will confer the right to receive distribution payments at a rate of 3.95 per cent per annum, with a distribution rate reset on Nov 12, 2027 and every 10 years thereafter.

The distribution rate will be subject to a one-time step-up of one per cent per annum on Nov 12, 2027.

The distribution will be payable semiannually in arrear on a discretionary basis and will be cumulative in accordance with the terms and conditions of the securities.

Proceeds from the offering of the securities will be used to redeem Mapletree's outstanding S$600 million 5.125 per cent perpetual securities on its first call date of July 25, 2017 and for other general corporate purposes, said the release.

DBS Bank Ltd, HSBC and OCBC are joint lead managers for the offering.