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.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Gold prices set for weekly decline ahead of US inflation data
Huawei’s new phone sports latest version of made-in-China chip
Meta’s earnings flop sparks US$400 billion sell-off in tech stocks
Singapore shares open lower on Friday; STI down 0.1%
OUE wins tender to lease, develop new ‘zero-energy’ hotel at Changi Airport’s T2
Roku’s warning on ad-supported streaming competition clouds upbeat earnings