ST Engineering unit to issue US$500m of 4.125% fixed rate notes due 2026

A WHOLLY owned subsidiary of Singapore Technologies Engineering (ST Engineering) has priced US$500 million in three-year notes with a 4.125 per cent fixed-rate coupon.

The notes are expected to be issued on May 23 by STE TransCore, and will mature on May 23, 2026, ST Engineering said in a statement on Tuesday (May 16).

These notes will be issued in denominations of US$200,000 and integral multiples of US$1,000 in excess thereof.

Net proceeds of the issue will be used by STE TransCore for the purpose of refinancing its outstanding short-term US commercial papers, ST Engineering said. The company added that it expects interest expense incurred on the notes to be reduced through the amortisation of the unused treasury lock settlement gains on its balance sheet reserves.

Application will be made to the Singapore Exchange (SGX) for permission to deal in and the listing and quotation of the notes.

The notes are expected to be listed on the SGX on May 24. They will be issued under the S$5 billion global medium term note programme, which is unconditionally and irrevocably guaranteed by ST Engineering.

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STE TransCore was formerly known as ST Engineering Urban Solutions USA until it was renamed on Jun 9 last year.

ST Engineering shares rose S$0.10, or 2.76 per cent, to close at S$3.72 on Tuesday ahead of the announcement.