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Suntec Reit prices S$200m perps at 3.8%

THE trustee of Suntec Real Estate Investment Trust (Suntec Reit) has priced S$200 million in subordinated perpetual securities at 3.8 per cent, the Reit manager said on Monday night in a bourse filing.

Net proceeds from the issue will be used by the Reit and its subsidiaries for refinancing existing borrowings, financing or refinancing acquisitions and/or investments, financing any asset enhancement works which it has an interest in, as well as general corporate purposes.

The new perps are expected to be issued on Oct 27, subject to the satisfaction of customary closing conditions.

Distributions will be payable semi-annually starting April 27, 2021.

The rate of distribution for the perps will be 3.8 per cent per annum from Oct 27, 2020, to Oct 26, 2025. For the period from Oct 27, 2025, and each reset date following, the reset rate of distribution will be a rate equivalent to the swap offer rate or such other successor rate.

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If there is no successor rate, the reset rate of distribution will be an alternative reference rate with respect to the relevant reset date, plus the initial spread of 3.295 per cent.

The perps will be issued under Suntec Reit's US$2 billion euro medium-term securities programme.

OCBC has been appointed as the sole lead manager for the perps.

Units of Suntec Reit closed up 1.4 per cent or S$0.02 to S$1.45 on Monday, before the announcement.

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