Keppel REIT prices S$200 million five-year convertible bond issue at 1.90 percent

Singapore two-dollar bills

Keppel REIT said late on Tuesday it priced its S$200 million five-year convertible bond offering at 1.90 percent, the top end of the expected interest rate range of 1.70 percent to 1.90 percent.

The initial conversion price for the bonds will be S$1.4625 per unit, the REIT said in a filing to SGX late on Tuesday, coming in at the bottom end of the expected range of S$1.4625 to S$1.5275.

The upsize option for another S$50 million worth of bonds also was not triggered.

However, the REIT said the issue was “well subscribed,” with the bonds placed with institutional and other investors.

The number of new units to be issued if the bonds are fully converted into new units is around 136.75 million, the filing said.

In an SGX filing before the bond was priced, Keppel REIT said that based on an issue size of S$200 million, net proceeds were expected at around S$197.45 million, and are earmarked to re-finance existing debt and/or fund any potential acquisitions.

The REIT’s manager is already conducting due diligence on a potential acquisition, but there’s no assurance the deal will proceed, the earlier filing said.

BNP Paribas and Credit Suisse (Singapore) were the joint lead managers for the issue, the filing said.

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