Frasers Property to redeem S$600m 4.88% perpetual bonds on Sept 24, Companies & Markets

Fri, Aug 23, 2019 – 9:01 AM

FRASERS Property said on Friday that it is redeeming S$600 million of 4.88 per cent subordinated perpetual bonds issued in 2014 that were also the biggest sale that year.

In a regulatory update before the market opened, the property developer said the issuer, which is its wholly-owned subsidiary, is electing to redeem all the perpetual securities at 100 per cent of the principal amount on Sept 24, 2019. 

The perpetual bonds were the fifth perpetual issuance in 2014, and also the largest perpetual deal by a Singapore non-bank corporate since July 2012 at the time.

Orders were in excess of S$3.5 billion, said DBS Bank at the time, which was one of the global coordinators. Demand meanwhile was diverse; besides private bank investors, other investors included cash-rich companies.

The hot demand for the perps led to the subordinated NC-5 perpetual bonds being priced at 4.88 per cent, lower than the initial guidance of 5 per cent. NC-5 means the bonds cannot be redeemed by the issuer until the fifth year, or Sept 24, 2019.

The bonds were issued under Frasers Property’s S$3 billion multicurrency debt issuance programme. 

Frasers Property shares closed flat at S$1.77 on Thursday.

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