FLCT's S$150m 2.18% sustainability notes due 2028 three times subscribed

A WHOLLY-OWNED subsidiary of Frasers Logistics & Commercial Trust BUOU 's (FLCT) trustee has priced S$150 million of its maiden sustainability notes due 2028.

The seven-year, fixed-rate notes carry a coupon of 2.18 per cent per annum and fall under FLCT's S$1 billion multicurrency debt issuance programme. They are expected to be issued on July 26. They are rated BBB+ by S&P.

The issuance was three times subscribed based on a final order book which was over S$450 million. The manager said the deal was underpinned by "exceptionally strong demand" from institutional investors.

Three-quarters of the notes were allocated to fund manager and insurance accounts, 19 per cent went to banks and public sector accounts, while 6 per cent went to private banking accounts.

Net proceeds from the issuance will be used to fully or partially finance or refinance eligible sustainability projects described in FLCT's sustainable finance framework established on July 7. The framework was reviewed by Deloitte as at the same date.

Robert Wallace, chief executive of the manager, said: "Sustainability has been integral to FLCT's business activities since our inception, and we are delighted with this opportunity to match the diversification of our financing needs via the debt capital markets with sustainability notes."

It is also the "first-ever" sustainability notes to be priced in the Singapore dollar bond market, the manager said.

DBS and OCBC are the joint lead managers and bookrunners for the transaction. OCBC was also the sustainable finance adviser in the preparation of the framework.

FLCT units closed 0.7 per cent or S$0.01 lower at S$1.52 on the same day, before the announcement.