GLP sells world's largest US-dollar green perp offering at US$850m

PROPERTY investment firm GLP this month sold the world's largest US-dollar green subordinated perpetual offering.

It priced a landmark US$850 million offering of green subordinated perpetual securities at a coupon of 4.5 per cent, GLP said in a media statement. The offering was upsized from the initial target size of US$500 million, with the orderbook more than six times subscribed.

The green perpetual securities are not callable for the first five years. They come with a 25 basis points (bps) step-up margin from year 10, and an additional - and cumulative - 75 bps step-up margin from year 25.

This is GLP's return to the international public US-dollar bond markets after more than five years. It is also the first-ever offering of the US-dollar green subordinated perpetual securities by an Asia-Pacific corporate issuer.

Proceeds from the green perpetual securities will be used by GLP to refinance eligible green projects in accordance to GLP's green finance framework, on which Sustainalytics has issued a second party opinion.

Edwin Tey, global treasurer of GLP, said: "We are very pleased to see the high level of investor confidence and the strong market response to our first-ever perpetual green bond."

Citigroup, DBS Bank, Deutsche Bank, Goldman Sachs, and Mizuho Securities Asia were the joint bookrunners and joint lead managers for the offering.