The manager of Suntec REIT has launched and priced $175 million 3.40% notes due 2031 for corporate purposes, refinancing of existing borrowings, financing/refinancing acquisitions among other reasons.
The notes will be issued under the US$2 billion Euro Medium Term Securities Programme established on Aug 15, 2013. DBS and UOB have been appointed as the joint lead managers for the issue of the notes.
The notes are issued at an issue price of 100% of their principal amount in denominations of $250,000. They are expected to be issued on March 27, 2025 and will mature on March 27, 2031.
The net proceeds will be used by Suntec REIT and its subsidiaries for general corporate purposes, refinancing of existing borrowings, financing or refinancing acquisition and/or investments and financing any asset enhancement works.
The issuance of the notes comes a month after the failed take over of the REIT by property tycoon Gordon Tang and his wife Celine, as their shareholding fell short of the 50% threshold as at the offer closing date on Feb 7.
The offer was first made at $1.16 apiece on Dec 5, 2024, and later raised to $1.19 per unit. The offer closing date was postponed twice.
Units in Suntec REIT closed flat at $1.16 on March 20.
