SingPost issues S$250m in perpetual securities at initial rate of 4.35% per annum

Singapore

SINGAPORE Post (SingPost) said in a bourse filing late Wednesday (Mar 30) that it will be issuing S$250 million in perpetual securities with an initial distribution rate of 4.35 per cent per annum for the first 5 years.

The distribution rate will be reset on Jul 6, 2027 to a rate equivalent to the 5-year Singapore Overnight Rate Average Overnight Indexed Swaps, in addition to an initial spread of 2.183 per cent and a step-up margin of 0.25 per cent.

This distribution rate will be reset again on Jul 6, 2047, with the step-up margin increased to 1 per cent, while everything else remains the same.

Its expected to be issued on Apr 6 this year with no fixed redemption date.

These perpetual securities will be issued under a S$1 billion multicurrency debt issuance programme.

The money raised from the sale of these perpetual securities will be used for SingPost's general corporate purposes, including the refinancing of its existing borrowings.

With the exception of the first distribution which will be for the period between Apr 6 and Jul 6, the subsequent distributions will be paid out every 6 months.

Like all perpetual securities, SingPost can choose to stop paying distributions for an indefinite period.

DBS, HSBC Singapore and OCBC Bank have been appointed as joint lead managers and bookrunners for this offering.

Shares of SingPost closed lower by 1.5 per cent, or S$0.01 at S$0.65 on Thursday.