UPDATE: Mapletree Logistics Trust sets pricing of S$400M perpetual securities

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This item was originally published on Wednesday, 27 October 2021 at 2:06 a.m. SGT; it has since been updated to include Mapletree Logistics Trust’s plans to redeem its previously issued perpetual securities.

Mapletree Logistics Trust has priced S$400 million of fixed-rate subordinated perpetual securities at 3.725 percent, the trust said in a filing to SGX late Tuesday. The trust said it would redeem its S$250 million 4.18 percent fixed-rate securities.

The offering confirms a Shenton Wire article earlier Tuesday. A client note seen by Shenton Wire had indicated the notes had an initial price guidance of around 4.0 percent, with a “landing guidance” at around 3.6 percent. Bond prices move inversely to yields.

The interest rate on the notes will run from 2 November 2021 through 2 November 2026, which will be the first reset date, with the interest rate to reset at the Singapore overnight rate average overnight indexed swap rate plus the initial spread of 2.485 percent, the filing said.

Distributions will be paid on 2 May and 2 November of each year, starting on 2 May 2022, Mapletree Logistics Trust said.

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

The trust said the notes are expected to be issued on 2 November 2021, with listing on SGX expected on 3 November. The expected rating from Fitch Ratings is BBB-minus, the filing said.

DBS Bank and OCBC were appointed as the joint lead managers and bookrunners for the notes, the filing said.

The notes will be issued as series 004 under the trust’s S$3 billion euro medium-term securities program, the filing said.

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

In a separate filing to SGX, the trust said it would redeem its S$250 million 4.18 percent fixed-rate securities on 25 November. The redemption price will be equal to 100 percent of the principal amount, along with accrued distributions, excluding the redemption date, the filing said.