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Manager of Suntec REIT to issue $250 mil fixed rate subordinated perpetual securities

Nicole Lim
Nicole Lim • 2 min read
Manager of Suntec REIT to issue $250 mil fixed rate subordinated perpetual securities
Net proceeds from the perpetual securities will be used to refinance of existing borrowings, such as the issuer’s $200 million fixed rate subordinated perpetual securities callable in October 2025. Photo: Samuel Isaac Chua/The Edge Singapore
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The manager of Suntec REIT, EST Trust Management, has proposed to issue $250 million fixed rate subordinated perpetual securities under its US$2 billion euro medium term securities programme, according to a bourse filing on June 10.

The perpetual securities will be perpetual in respect of which there is no fixed redemption date and will confer a right to receive distribution payments.

The rate of distribution for the perpetual securities from June 17, 2025 to June 17, 2030, or the first reset date is 4.48% per annum, and from the period from and including the first reset date and each reset date falling thereafter, the applicable reset rate of distribution.

This rate is equivalent to the prevailing five-year SORA-OIS plus the initial spread of 2.656%, subject to the benchmark discontinuation and replacement provisions set out in the pricing supplement.

The manager of the REIT says that the net proceeds arising from the issue of the perpetual securities will be used by Suntec REIT and its subsidiaries for refinancing of existing borrowings, including but not limited to the issuer’s $200 million fixed rate subordinated perpetual securities callable in October 2025, as well as general working capital and capital expenditure requirements of the group.

Units in Suntec REIT closed flat at $1.13 on June 10.

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