Suntec Reit's S$150m perps priced at 4.25%

THE trustee of Suntec Reit (real estate investment trust) has priced S$150 million of subordinated perpetual securities at 4.25 per cent per annum, for five years from June 15, the Reit manager announced in a Monday night bourse filing.

After the first reset date of June 15, 2026, the new rate will be equivalent to the Swap Offer Rate, its successor rate, or if there is no successor rate, an alternative reference rate, with respect to the reset date plus the initial spread of 3.29 per cent.

The net proceeds from the issue will be used by Suntec Reit for refinancing its existing borrowings, financing or refinancing its acquisitions or investments and financing any asset enhancement works.

The perpetuals will be issued under the Reit's US$2 billion Euro Medium Term Securities Programme. Distributions under the perpetuals shall be payable semi-annually in arrear on June 15 and Dec 15 in each year, commencing on Dec 15, 2021.

HSBC's Singapore branch and United Overseas Bank have been appointed as the joint lead managers for the perp issue.

Units of Suntec Reit closed at S$1.49 on Monday, up 1.36 per cent, before the announcement.