Temasek-tied ST Telemedia priced S$350 million perpetual securities

Singapore five-dollar note Photo by Leslie Shaffer

ST Telemedia said on Monday that it priced S$350 million 5.0 percent subordinated perpetual securities, which are expected to be issued on 17 January and listed on SGX-ST on or around 18 January.

The net proceeds from the issuance will be used to finance general corporate funding requirements or investments, including new investments and acquisitions, refinancing existing borrowings, working capital, capital expenditure and other general funding needs, it said.

The perpetual securities will be issued in denominations of S$250,000 and will be perpetual, with no fixed final redemption date, the filing to SGX after the market close on Monday said.

ST Telemedia can redeem the securities at 100 percent of their principal amount on 17 January 2024, or on any distribution date afterward, it said.

The distribution rate will reset for the first time on 17 January 2024, with subsequent resets every 10 years afterward, it said, adding that the reset rate will be the prevailing 10-year swap offer rate, plus the initial spread of 2.705 percent, plus a step-up of 1.0 percent per annum.

The securities were issued under the S$2 billion multicurrency debt issuance program established in 2015, it said.

DBS Bank and UOB have been appointed as joint lead managers and bookrunners of the securities, ST Telemedia said.

Singapore state-owned investment firm Temasek is the parent of ST Telemedia, which actively invests in the communications, media and technology sectors.

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