OUE Reit unit issues S$150 million green notes due 2032 at 2.75%; offering 2.8 times oversubscribed

Net proceeds will go exclusively towards projects that meet at least one eligibility category in the real estate investment trust’s green financing framework

Therese Soh
Published Tue, Sep 30, 2025 · 08:58 AM — Updated Thu, Oct 9, 2025 · 10:17 AM
    • Notes are set to be listed on the SGX on Thursday and are expected to be recognised under the SGX Sustainable Fixed Income initiative.
    • Notes are set to be listed on the SGX on Thursday and are expected to be recognised under the SGX Sustainable Fixed Income initiative. PHOTO: YEN MENG JIIN, BT

    [SINGAPORE] OUE Reit Treasury, a wholly owned subsidiary of OUE Reit , issued its second seven-year investment grade green notes on Wednesday (Oct 8).

    The notes are set to be listed on the Singapore Exchange (SGX) on Thursday and are expected to be recognised under the SGX Sustainable Fixed Income initiative, the manager said on Wednesday.

    Issued at a 2.75 per cent fixed rate, the offering comprised S$150 million worth of green notes due in 2032, the manager said. It previously announced the pricing of the offering on Sep 29 and said then that the notes would be payable semi-annually in arrears.

    The notes were issued under the S$2 billion euro medium-term note programme of DBS Trustee, the trustee of OUE Reit, and OUE Reit Treasury, the issuer. They have been rated “BBB-” by S&P Global Ratings.

    With an initial price guidance of 3.05 per cent, the offering garnered a peak orderbook of S$412.8 million, representing an oversubscription rate of 2.8 times.

    The final pricing was 2.75 per cent, representing a 30 basis point reduction from the initial price guidance. Compared with the previous seven-year investment grade green notes issued in September 2024, this was a 115 basis point compression, the manager said.

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    It added that 80 per cent of the final allocation went to institutional investors.

    Net proceeds from the issuance will be used exclusively for the financing or re-financing of new, as well as existing green projects, in part or in whole. Such projects must meet at least one of the eligibility categories in accordance with OUE Reit’s green financing framework established in November 2023.

    Following the issuance and the completion of OUE Bayfront’s refinancing in August 2025, 16.2 per cent of OUE Reit’s total debt is due in 2026, the manager said.

    On a pro forma basis as of Jun 30, 2025, the weighted average cost of debt will be reduced to 4 per cent per annum from 4.2 per cent per annum, the manager said. The weighted average debt maturity will be extended to 3.6 years from 2.7 years, it added.

    OCBC and DBS were joint lead managers and bookrunners of the offering. OCBC was also the sole global coordinator and the green finance adviser to the issuer.

    Units of OUE Reit closed on Wednesday at S $0.345, down S$0.005 or 1.4 per cent, before the news. 

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