MNACT issues first ever perps, prices S$250m at 3.5%

RW0U 's (MNACT) trustee on May 31 priced S$250 million of perpetual securities at a distribution rate of 3.5 per cent to yield 252.7 basis points over the five-year swap offer rate.

The perps, MNACT's first, were sold at par and may be called by the issuer after five years, DBS, as trustee, said on Tuesday.

Swap transactions will be entered into to swap the Singapore dollar distribution rate into Japanese yen fixed interest rate, the trust's manager said.

Funds from the issuance will be used for general corporate purposes, including to pay for the recently announced acquisition of a freehold office building in Japan.

The total order book stood in excess of S$400 million. The perps were "oversubscribed with the price tightened from the initial guidance of 3.7 per cent to 3.5 per cent", said Ng Wah Keong, chief financial officer of the manager.

Private banks made up 60 per cent of orders while fund managers, insurance companies and banks took the remaining 40 per cent.

By region, 97 per cent of orders were from Singapore and 3 per cent from overseas.

Payment will be made semi-annually in arrear on June 8 and Dec 8, but for this year, the first distribution date will be Dec 8.

OCBC was appointed sole global coordinator while DBS and OCBC were the joint lead managers and bookrunners for the deal.

The offering is part of MNACT's US$1.5 billion euro medium term securities programme.

MNACT units closed up S$0.01 or 1 per cent at S$1.04 on Tuesday.