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Shangri-La Hotel to issue S$250m 10-year bonds at 3.5%

SHANGRI-LA Hotel Limited, the wholly-owned Singapore subsidiary of Shangri-La Asia Limited, will sell new S$250 million 10-year bonds at par.

The senior unsecured bonds will carry a 3.5 per cent coupon rate, which is 183.7 basis points above the prevailing 10-year swap offer rate, according to the term sheet released on Wednesday.

They will mature on Jan 29, 2030 are expected to be listed on the Singapore Exchange (SGX).

The bonds are guaranteed by Shangri-La Asia, which has a primary listing in Hong Kong and a secondary listing on the SGX. Shangri-La Asia owns and manages hotels under the Hong Kong-based luxury hotel group Shangri-La Hotels and Resorts.

Proceeds from the issuance will be used for the group’s general corporate purposes.

DBS Bank, OCBC and United Overseas Bank are the joint lead managers and joint bookrunners for this deal.

In November 2018, Shangri-La Hotel issued S$825 million in seven-year bonds at 4.5 per cent, in one of the largest non-bank deals in years. Those bonds were also guaranteed by Shangri-La Asia.

Shares of Shangri-La Asia on the SGX were trading at HK$7.92 as at 11am on Wednesday, down HK$0.18 or 2.2 per cent.