AIMS APAC Reit proposes issue of S$250m perpetual securities at 5.375%
AIMS APAC Reit O5RU has priced S$250 million in perpetual securities at 5.375 per cent per annum, the manager of the real estate investment trust (Reit) said in a bourse filing on Monday night.
The perpetual securities will bear an initial distribution rate of 5.375 per cent per annum and a re-offer yield of 5.375 per cent, according to a term sheet seen by The Business Times.
The distribution rate will first reset on Sept 1, 2026; it will subsequently reset every five years thereafter based on the prevailing five-year Singapore overnight-rate average plus the initial spread of 4.654 per cent.
Deal statistics showed an orderbook of S$450 million across 31 accounts, with 99 per cent of investors from Singapore and 1 per cent from overseas. Some 51 per cent of the overall orderbook came from private banks, with the remaining 49 per cent from fund managers and banks.
The perpetual securities, issued under the Reit's S$750 million multicurrency debt issuance programme, can be redeemed on Sept 1, 2026, and on every distribution payment date thereafter, at par.
Net proceeds from the offering will be used to finance the general working capital, capital expenditure and investments of the Reit and its subsidiaries, as well as the partial or full refinancing of existing borrowings.
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Payment of the distribution will be made semi-annually in arrear on March 1 and Sept 1 of each year.
The Reit's manager said it expects the perpetual securities will be issued on Sept 1, 2021.
DBS Bank, HSBC's Singapore Branch, OCBC Bank and UOB are the joint lead managers for the offering of the perpetual securities.
Units of AIMS APAC Reit were trading at S$1.51 as at 2.42pm on Tuesday, up S$0.01 or 0.7 per cent.
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