Mapletree Investments prices S$600M perpetual securities at 3.7 percent

Mapletree Anson office building, part of Mapletree Commercial Trust’s portfolioMapletree Anson office building, part of Mapletree Commercial Trust’s portfolio

Mapletree Investments said Tuesday its wholly owned subsidiary Mapletree Treasury Services priced S$600 million in perpetual securities at 3.7 percent, marking the first subordinated fixed for life perpetual issuance in the Singapore dollar market.

Orders in excess of S$1.0 billion were received for the notes, with participation from around 60 high quality investors, Mapletree said in a press release on its website.

“Despite the current, challenging climate brought about by Covid-19, we went ahead to launch this first subordinated fixed for life perpetual securities in the SGD market,” Wendy Koh, group chief financial officer at Mapletree, said in the statement.

“We are glad that it was well received by investors from both the institutional and high net worth investors,” she said. “The success is a testament of investors’ recognition of Mapletree’s brand, strong credit and proven financial track record. The securities issuance will further strengthen Mapletree’s balance sheet and financial flexibility as the group continues to grow our business globally to deliver consistent high returns to our stakeholders.”

Proceeds from the offering will be used for general corporate purposes, Mapletree said.

The securities, which will be issued in denominations of S$250,000, will be perpetual, with the first callable option on 12 August 2024, Mapletree said.

The notes, which are unconditionally and irrevocably guaranteed by Mapletree, were issued under its US$5 billion euro medium-term note program.

DBS Bank, HSBC and OCBC were the joint lead managers for the offering.