Cromwell European REIT is pricing a benchmark-sized Singapore-dollar-denominated perpetual securities offering, according to a client note seen by Shenton Wire.
The initial price guidance is for the 5.125 percent area, but subject to market conditions and demand, the landing indicative range is 4.9 percent to 5.0 percent, the client note said.
The benchmark size suggests the offering will be at least S$250 million.
The proceeds are earmarked for financing or refinancing acquisitions and/or investments, financing any asset enhancement works, refinancing existing borrowings and general corporate purposes, the client note said.
The client note said the securities, which will be fixed-rate and subordinated, will have a denomination of S$250,000.
The first redemption date, which is optional for the issuer, will be in November 2026, and the distribution rate reset will be at the end of five years, and every five years afterward, the note said. The reset rate will be based on the prevailing five-year SORA-OIS plus the initial spread, the note said.
Distributions will be paid in May and November of each year, the note said.
The issuer is rated BBB-minus by Fitch Ratings, the note said.
Credit Suisse, DBS Bank and OCBC Bank are the joint lead managers and bookrunners of the offering, the note said.
The securities will be issued under Cromwell European REIT’s S$750 million multicurrency perpetual securities program, the client note said.
The notes will be issued by Perpetual (Asia) Ltd. In its capacity as the trustee of Cromwell European REIT, the note said.