ESR-LOGOS REIT prices S$150M perpetual securities

The ESR Bizpark @ Changi property, part of the portfolio of ESR-LOGOS REIT (E-LOG). Photo taken June 2022; credit: Shenton WireThe ESR Bizpark @ Changi property, part of the portfolio of ESR-LOGOS REIT (E-LOG). Photo taken June 2022; credit: Shenton Wire

ESR-LOGOS REIT, or E-LOG, has priced S$150 million of subordinated perpetual securities at 5.5 percent, the REIT said in a filing to SGX Thursday.

The net proceeds will be used to refinance the cash consideration for the merger of ESR-REIT and ARA LOGOS Logistics Trust, refinancing the existing borrowings of E-LOG, financing or refinancing acquisitions and/or investments, any development and/or asset enhancement works and/or financing general working capital and/or capital expenditure, the REIT said.

The first reset date for the notes is 9 June 2027, and every five years afterward, and if the notes aren’t called, the rate will reset to the prevailing five-year SORA-OIS rate, plus an initial spread of 2.958 percent, the filing said.

DBS Bank, OCBC, and UOB were appointed joint lead managers for the issuance, the filing said.

The securities will be series 008 under the REIT’s S$750 million multicurrency debt issuance program, the filing said.