Starhill Global Reit to issue S$100m 3.15% notes due 2025

STARHILL Global Real Estate Investment Trust (Starhill Global Reit) has closed the order book for S$100 million of five-year notes, recording S$225 million from 26 accounts, joint lead manager and bookrunner DBS said on Monday.

The senior, unsecured notes will carry a coupon of 3.15 per cent per annum, which is 262 basis points above the five-year swap offer rate. They are expected to be issued on June 5, 2020, and will mature on June 5, 2025.

They will also be unconditionally and irrevocably guaranteed by the Reit's trustee, the Reit manager said separately on Monday.

The Series 001 notes fall under the S$2 billion multicurrency debt issuance programme of Starhill Global Reit MTN, the Reit trustee's wholly-owned subsidiary.

DBS said 90 per cent of the orders came from fund managers, banks and insurers, 6 per cent came from private banks, and 4 per cent came from agencies and corporations.

By geography, 99 per cent of the orders came from Singapore investors, and the remaining from investors from Hong Kong.

Proceeds from the notes issue will be used to refinance the Reit's existing borrowings, meet capital expenditure requirements and/or working capital purposes.

The transaction is not expected to have any material impact on Starhill Global Reit's gearing, the manager added.

DBS Bank and United Overseas Bank are the joint lead managers and bookrunners of the Series 001 notes.

Units of Starhill Global Reit closed one Singapore cent or 2.1 per cent higher at 49.5 cents on Monday.