Frasers Property proposes S$200 million perpetual note issue

Sign at Frasers Tower, owned by Frasers PropertySign at Frasers Tower, owned by Frasers Property

Frasers Property has proposed late Tuesday issuing S$200 million in fixed rate perpetual securities at 100.527 percent of the face value, with an initial 4.98 percent distribution rate.

The notes will be a second tranche of the S$400 million in perpetual securities Frasers Property issued in April, and will include accrued interest from 11 April, the property developer said in a filing to SGX.

The net proceeds will be used for general corporate purposes and refinancing requirements, Frasers Property said.

The first reset date for the distribution rate will be 11 April 2024, with a reset rate of a spread of 3.04 percentage points  and a 1.00 percentage point step-up margin above the prevailing five-year Singapore dollar swap offer rate, Frasers Property said.

OCBC is the sole global coordinator, lead manager and bookrunner for the notes, the filing said.

The notes will be issued as series four tranche two under the developer’s S$5.0 billion multicurrency debt program established in 2017, the filing said.

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