ESR-REIT priced S$125 million in unsecured fixed rate notes due 2026 at 2.60 percent after the offering was more than 2.2 times subscribed, meeting with strong demand from institutional investors.
The pricing had tightened from the initial guidance of 2.75 percent, ESR-REIT said in a filing to SGX Wednesday.
Most of the offering was placed with fund managers and insurance accounts based in Singapore, the REIT said.
The notes were issued under the REIT’s S$750 million multicurrency debt program, with proceeds earmarked for refinancing existing borrowings, financing or refinancing acquisitions, investments, development and/or asset enhancement works, and financing general working capital and capital expenditure needs, the REIT said.
“We are heartened by the strong investor support received for our first bond issuance since ESR Cayman Limited came onboard as our sponsor. With a pricing at 2.60 percent per annum, this offer represents ESR-REIT’s lowest coupon which has gained us significant savings against previous similar issuances at mid-3 percent to high-3 percent pricing levels,” Adrian Chui, CEO and executive director of the REIT’s manager, said in the statement.