[SINGAPORE] ESR-Reit has priced S$125 million in subordinated perpetual securities at 5.75 per cent under its S$750 million multicurrency debt issuance programme.
The net proceeds arising from the issue of the securities will be used to refinance or repay existing borrowings or to finance or refinance ESR-Reit’s acquisitions and investments, or for asset enhancement works, working capital and capital expenditure required, the Reit’s manager said on Thursday (Mar 13).
DBS and OCBC will be joint lead managers for the issue.
Holders will receive distributions in arrears and may redeem the perpetual securities on the first reset date of Mar 20, 2030, or any distribution payment date falling after the first reset date.
The distribution rate will be reset on the first reset date and every five years thereafter.
This will be at a rate equal to the Singapore Overnight Rate Average Overnight Indexed Swap plus the initial spread of 3.512 per cent. The distribution will be paid twice a year.
The perpetual securities are expected to be issued on Mar 20.
Units of ESR-Reit closed up 2.1 per cent or S$0.005 at S$0.245 on Thursday before the announcement.
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