Frasers Logistics Trust raises S$150M in first sustainability notes in SGD bond market

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Frasers Logistics & Commercial Trust has priced S$150 million in seven-year sustainability notes — the first ever raised in the Singapore-dollar bond market — at 2.18 percent, the trust’s manager said in a filing to SGX Thursday.

The notes, issued under a newly established sustainable finance framework, met with strong demand from institutional and high net worth investors, landing more than S$450 million worth of orders across 39 accounts, the filing said.

Fund managers and insurance accounts were allocated 75 percent of the notes, while banks and public sector accounts received 19 percent and private banking accounts received 6 percent, the trust’s manager said.

The proceeds will be deployed toward financing or refinancing eligible sustainable projects, FLCT’s manager said.

FLCT has committed to reaching net-zero carbon status by 2030, in line with sponsor Frasers Property’s goal as an organisation, the filing said.

In April, S&P Global Ratings assigned a BBB-plus long-term issuer credit rating, with stable outlook, to the trust, in expectation earnings would remain resilient due to portfolio diversification across asset classes and geographies, the filing said. The sustainability notes are also rated BBB-plus.

DBS Bank and OCBC Bank were the joint lead managers and bookrunners for the deal.