Keppel DC Reit issues S$90 million floating rate notes
Tay Peck Gek
KEPPEL DC Real Estate Investment Trust (Reit)’s manager said that the data centre-focused Reit has issued S$90 million of floating rate notes due 2026.
The notes come with an interest rate based on the compounded daily Singapore Overnight Rate Average plus an agreed spread.
In a filing to the Singapore Exchange on Friday (Dec 8), Keppel DC Reit Management announced that Keppel DC Reit MTN on Friday issued the floating rate notes at a price of 100 per cent of the principal amount and in denominations of S$250,000. Interest on the debt will be payable quarterly.
Keppel DC Reit MTN is a wholly-owned subsidiary of Perpetual (Asia) Limited – the trustee of Keppel DC Reit.
The floating rate notes, expected to mature on Dec 3, 2026, are part of the S$2 billion multicurrency debt issuance programme established by Keppel DC Reit MTN and will be unconditionally and irrevocably guaranteed by the trustee.
The net proceeds from the notes will be used for purposes including financing or refinancing acquisitions and/or investments of the Reit, development or enhancement works initiated by the trustee, general working capital and capital expenditure.
The notes have a condition where an event of default may occur if the Reit manager and the replacement or substitute manager is not appointed in accordance with the terms of the Keppel DC Reit trust deed.
Breaching the condition may trigger cross-defaults in the other facilities and debt issues of the group, affecting about S$2.1 billion worth of facilities and debt issues (excluding interest and fees) as at Nov 30.
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