Keppel Corp. has priced S$400 million in fixed-rate subordinated perpetual securities at 2.90 percent, the company said in a filing to SGX Tuesday.
The proceeds are earmarked for general corporate and working capital purposes, including refinancing of existing debt, Keppel said.
The notes are perpetual, with no fixed redemption date, with the first reset date for the distribution rate set at 16 September 2026, the filing said. The reset rate will be the reference rate at the reset date, plus the initial spread of 2.097 percent and the step-up margin of 1 percent, Keppel said.
The reset dates will be five years apart, Keppel said.
The first call date at which Keppel can choose to redeem the notes is 16 September 2024, the filing said.
The bonds, which are unsecured and subordinated obligations, will be in denomination of S$250,000, the filing said, adding the expected issue date is on or around 16 September.
The offeror will apply to list the bonds on SGX, the filing said.
DBS Bank, OCBC and UOB were appointed as joint bookrunners and lead managers for the offering, the filing said.