Keppel Reit prices S$150 million 2.07% notes due 2028

KEPPEL Reit has priced S$150 million notes with a fixed coupon rate of 2.07 per cent per annum due 2028, the Reit manager announced in a bourse filing on Wednesday.

The notes will be issued under the Reit's S$1 billion multicurrency debt issuance programme.

The Series 005 notes are expected to be issued on Sept 24, at an issue price of 100 per cent of the principal amount and in denominations of S$250,000.

The notes are expected to mature on Sept 24, 2028, unless previously redeemed, or purchased and cancelled in accordance with the terms and conditions of the notes. The interest for the Series 005 notes will be payable semi-annually.

DBS, OCBC and UOB have been appointed as joint lead managers and bookrunners of the offering of the Series 005 Notes.

Keppel Reit said the net proceeds from the issue of the notes - after the deduction of issue expenses - will be used by its trustee in part for the financing or refinancing acquisitions and investments of the Reit or any asset enhancement works initiated by the Reit trustee or any trust, fund or entity in which Keppel Reit's trustee holds a stake in.

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Other uses of the proceeds by the trustee are the on-lending to any trust, fund or entity in which Keppel Reit's trustee has an interest, as well as to finance the general working capital purposes and refinance the borrowings of Keppel Reit and its subsidiaries.

The notes contain a condition where a default may occur if Keppel Reit's current manager is removed as the manager of the Reit, and a replacement or substitute manager is not appointed in accordance with the terms of the trust deed. This could trigger cross defaults in the other facilities, debt issues and borrowings of the Reit or its subsidiaries, said Keppel Reit.

In such an event, the aggregate level of facilities, debt issues and borrowings that may be affected is approximately S$2.7 billion as at Wednesday.

Units of Keppel Reit closed unchanged on Wednesday at S$1.07.