Frasers Property proposes S$400 million perpetual security issue

Waterway Point mall, by Frasers Property, at Punggol New Town in Singapore; taken August 2018.Frasers Property‘s Waterway Point mall at Punggol New Town in Singapore.

Frasers Property said on Thursday it proposed issuing S$400 million fixed-rate subordinated perpetual securities at 4.98 percent.

The securities will be issued as series 004 under the S$5.0 billion multicurrency debt issuance program, which was established in 2017, Frasers Property said in a filing to SGX late on Thursday.

The distribution rate of 4.98 percent will begin from 11 April 2019 through the first reset date, when the rate will be the prevailing five-year Singapore dollar swap offer rate plus the initial spread of 3.04 percent and the step-up margin of 1.0 percent, the filing said.

The series 004 securities are expected to be issued on 11 April 2019, and the step-up date is 11 April 2024, it said.

As perpetual securities, there is no fixed final redemption date, it said.

The net proceeds are earmarked for general corporate purposes and refinancing requirements, Frasers Property said.

The securities will be issued via Frasers Property’s wholly owned subsidiary Frasers Property Treasury, the filing said.

OCBC is the sole global coordinator, lead manager and bookrunner for the series 004 securities, the filing said.

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