OUE Commercial REIT prices S$100M notes due 2027

The OUE Downtown 2 building in Singapore’s Central Business District. Credit: Shenton WireThe OUE Downtown 2 building in Singapore’s Central Business District. Credit: Shenton Wire

OUE Commercial REIT has priced S$100 million notes due 2027 at 4.20 percent, the REIT said in a filing to SGX Monday.

That compares with the REIT saying in May 2021 it priced S$150 million in notes due 2026 at 3.95 percent.

The announcement confirms a Shenton Wire article.

If the major rating agencies — S&P Global Ratings, Moody’s Ratings Service or Fitch Ratings — assigns an investment grade rating to both OUE Commercial REIT and the notes within 18 months of issuance, the original rate will step down by 0.25 percentage point to 3.95 percent, the filing said. The rating will step back up if the ratings on the REIT and the notes aren’t maintained, the filing said.

The net proceeds will be used for refinancing existing borrowings, general corporate funding — including investments and capital expenditures — and other general working capital purposes, OUE Commercial REIT said.

OCBC is the sole lead manager and bookrunner for the notes, the filing said.

The notes, which are expected to be listed on SGX on 6 May, will be issued under the REIT’s S$2 billion multicurrency debt issuance program, the filing said.