ST Engineering unit to issue US$750 million 4.25% notes due 2030
They will be issued under the company’s S$5 billion global medium-term note programme
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[SINGAPORE] A wholly owned subsidiary of Singapore Technologies Engineering (ST Engineering) has priced US$750 million in five-year notes with a 4.25 per cent fixed-rate coupon.
The notes are expected to be issued on May 8, and will mature on May 8, 2030, ST Engineering said in a statement on Tuesday (Apr 29).
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 the subsidiary, ST Engineering RHQ Ltd, to refinance existing borrowings, said ST Engineering.
The notes are expected to be listed on the Singapore Exchange on May 9. They will be issued under the S$5 billion global medium-term note programme, which is unconditionally and irrevocably guaranteed by ST Engineering.
The programme was set up in March 2020 to support the group’s long-term strategy to enhance shareholder value, ST Engineering had previously said. It enables the group to tap the debt capital market for longer-tenor financing to optimise its short-term to long-term debt mix and its capital structure.
ST Engineering shares fell S$0.03 or 0.4 per cent to close at S$7.32 on Tuesday, ahead of the announcement.
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