UOL unit prices S$75 million fixed rate notes at 2.78%
Net proceeds will be used for general corporate purposes of UOL and its subsidiaries, including for refinancing of borrowings
[SINGAPORE] Property developer UOL on Wednesday (Jul 9) announced that its wholly owned subsidiary UOL Treasury Services (UTS), a special purpose entity, priced S$75 million worth of fixed rate notes.
The notes will be issued as the second tranche of the fifth series under a S$2 billion multicurrency medium-term note programme established by UTS in November 2014.
They are payable semi-annually at a fixed rate of 2.78 per cent and are expected to mature on Jul 15, 2032, UOL said.
Net proceeds from the issuance, after deducting issuance expenses, will be used for general corporate purposes of UOL and its subsidiaries. These include the refinancing of existing borrowings alongside the financing of working capital and capital expenditure requirements of the group.
Under the programme, UOL will guarantee the notes unconditionally and irrevocably. Its payment obligations as guarantor will rank pari passu with all other present and future unsecured obligations, excluding subordinated obligations and priorities created by the law, the property player said.
The notes will be issued to institutional investors and accredited investors in Singapore.
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The Singapore branch of CIMB Bank has been appointed as the sole dealer for the notes.
With a presence in 15 countries and total assets of S$23 billion, UOL’s portfolio spans residential, commercial and hospitality properties. It owns or manages 48 hospitality properties, including hotel Parkroyal Collection Pickering in Chinatown.
Its subsidiaries include mainboard-listed real estate company Singapore Land Group and Pan Pacific Hotels Group.
Shares of UOL ended Wednesday 3.4 per cent or S$0.22 higher at S$6.61, before the news.
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