SPH REIT prices S$300 million perpetual securities offering

Singapore two-dollar bills

SPH REIT priced an offering of S$300 million subordinated perpetual securities at 4.10 percent, SPH REIT management, the REIT’s manager, said in a filing to SGX Friday.

The perpetual securities, which will be issued in denominations of S$250,000, are expected to be issued on 30 August, the filing said.

The first reset date for the distribution rate will be on 30 August 2024, and then every five years afterward, the filing said. The reset distribution rate will be the prevailing five-year swap offer rate at the time plus an initial spread of 2.517 percent a year, the filing said.

The net proceeds will be used for financing general working capital, capital expenditure and corporate requirements, including acquisitions and investments, and/or refinancing existing borrowings, SPH REIT said.

The securities will be issued under the REIT’s S$1 billion multi-currency debt issuance program established on 21 August, the filing said.

HSBC’s Singapore branch and OCBC were appointed as joint lead managers and bookrunners for the offering, the filing said.

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