Unit of CapitaLand Ascott Reit trustee issues S$165m of 5% notes due in 2026

THE managers of CapitaLand Ascott Real Estate Investment Trust (CapitaLand Ascott Reit) and CapitaLand Ascott Business Trust said on Friday (Nov 18) that Ascott Reit MTN – a wholly-owned subsidiary of the trustee of CapitaLand Ascott Reit – has issued S$165 million of 5 per cent notes due May 18, 2026.

The notes are issued under its S$2 billion multicurrency debt issuance programme established in September 2009 and amended in July 2020. The payment obligations of Ascott Reit under the notes will be unconditionally and irrevocably guaranteed by DBS Trustee, in its capacity as trustee of CapitaLand Ascott Reit.

The net proceeds arising from the issue of the notes will be used for refinancing the existing borrowings of CapitaLand Ascott Reit and its subsidiaries.

Ascott Reit MTN has entered into swap transactions to swap the Singapore dollar-denominated coupon payments of the notes into Japanese yen at a fixed interest rate of 1.06 per cent per annum.

CapitaLand Ascott Reit and CapitaLand Ascott Business Trust make up stapled group CapitaLand Ascott Trust (Clas).

Units of Clas closed at S$0.96 on Friday, down 0.5 per cent or S$0.005, before the announcement.