Ascendas REIT pricing 7-year green bonds: Client note

Ascendas REIT completed in 2021 the acquisition of the remainder of business park property Galaxis in one-north in Singapore. Credit: Ascendas REIT; Photo: RENDY ARYANTO/Visual Verve StudiosAscendas REIT completed in 2021 the acquisition of the remainder of business park property Galaxis in one-north in Singapore. Credit: Ascendas REIT; Photo: RENDY ARYANTO/Visual Verve Studios

Ascendas REIT is pricing seven-year senior unsecured fixed-rate green notes denominated in Singapore dollars, according to a client note seen by Shenton Wire Monday. 

The initial pricing guidance is in the 3.75 percent area, with the landing guidance at around 3.4 percent to 3.5 percent, the client note said.

The net proceeds will be used for financing or refinancing eligible projects under the REIT’s green finance framework, the client note said. The “benchmark” status of the notes may indicate the offering size is greater than S$100 million. 

Moody’s Ratings Service is expected to rate the bonds at A3, based on the issuer rating, according to the client note. The A3 rating is a medium investment grate credit rating, indicating the issuer has a low risk of default.

The notes, which have a minimum investment size of S$250,000, will be issued from Ascendas REIT’s S$7 billion euro medium term securities program, the client note said.

The client note said the sole lead manager, bookrunner and green finance advisor is OCBC Bank.