Mapletree Logistics Trust pricing SGD perpetual securities: Client note

Singapore 50 dollar bill

Mapletree Logistics Trust is pricing benchmark Singapore dollar fixed-rate perpetual securities, with the initial price guidance set at around 4.0 percent, with the “landing guidance” at around 3.6 percent, according to a client note seen by Shenton Wire.

The pricing will be subject to market conditions and demand, the note said. Bond yields move inversely to prices.

The bid/offer price was at 99.65/100.23 and the bid/offer yield-to-call (YTC) was at 3.23 percent/3.09 percent, the note said.

The benchmark indication in the client note suggests an at least S$250 million offering.

The minimum investment size is at S$250,000, according to the note.

The proceeds will be used for general corporate and working capital purposes, including refinancing Mapletree Logistics Trust’s 4.18 percent subordinated perpetual securities and to fund committed acquisitions, the note said.

The notes will be issued under Mapletree Logistics Trust’s S$3 billion euro medium-term securities program, the note said.

The distribution rate reset will be at the end of year five, and then every five years afterward and will be based on the prevailing five-year SORA-OIS, plus the initial spread, the client note said.

The note said distribution payments would be in May and November of every year, with the first payment on May 2022.

The issuer rating is at Baa2 and BBB-plus by Moody’s Ratings Service and Fitch Ratings, respectively, with the notes expected to be rated at BBB-minus by Fitch Ratings, the note said.

The joint lead managers and bookrunners are DBS Bank and OCBC Bank (B&D), the note said.

The offering is via the trust’s trustee HSBC Institutional Trust Services (Singapore), the note said.