Keppel Infrastructure Trust proposes S$200 million perpetual security issue

Singapore 50 dollar bill

Keppel Infrastructure Trust has proposed Tuesday an issuance of S$200 million 4.75 percent subordinated perpetual securities as series 001 under its S$1 billion multicurrency debt issuance program.

The net proceeds will be used to refinance borrowings and for general working capital purposes, the trust said in a filing to SGX.

The securities have no fixed final redemption date, but KIT can redeem them in whole on 12 June 2029, the filing said.

The distribution rate of the securities will reset the first time on 12 June 2029 and then every 10 years afterward, KIT said, adding the rate will be the prevailing 10-year Singapore dollar swap offer rate plus an initial spread of 2.737 percent and a step-up margin of 1.0 percent.

OCBC is the sole lead manager and bookrunner for the securities, the filing said.

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