SPH Reit prices S$300m in 4.1% perpetual securities, Companies & Markets

Fri, Aug 23, 2019 – 8:25 PM

RETAIL landlord SPH Reit has priced its offering of S$300 million of 4.1 per cent subordinated perpetual securities, under its S$1 billion multicurrency debt issuance programme announced on Wednesday.

The perpetual securities, to be issued in denominations of S$250,000 or multiples thereof, are expected to be issued on Aug 30, SPH Reit said on Friday. As perpetual securities, they have no fixed final redemption date.

The securities will confer a right to receive distribution payments at an annual rate of 4.1 per cent, with the first rate reset on Aug 30, 2024, and subsequent resets every five years afterwards. Distributions will be payable semi-annually in arrear.

The reset distribution rate will be the prevailing five-year swap offer rate with respect to the relevant reset date, plus the initial spread of 2.517 per cent per annum, said SPH Reit.

SPH Reit said net proceeds will be used for financing its general working capital, capital expenditure and corporate requirements – including acquisitions and investments – and/or refinancing existing borrowings.

HSBC Singapore and OCBC have been appointed joint lead managers and bookrunners for the offering.

SPH Reit’s sponsor, Singapore Press Holdings, publishes The Business Times.

SPH Reit units closed down one Singapore cent or 0.92 per cent on Friday at S$1.08 before the news.

Amendment note: An earlier version of the story incorrectly said SPH Reit has priced S$3 million in 4.1 per cent perpetual securities. It should be S$300 million.

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