Aims Apac Reit trustee issues S$150 million perpetual securities at 4.1%

The perps are issued under a S$750 million multicurrency debt issuance programme started in November 2018

The trustee of Aims Apac Reit (AA Reit), HSBC Institutional Trust Services (Singapore), on Wednesday (Jan 21) issued S$150 million of subordinated perpetual securities carrying a distribution rate of 4.1 per cent.

The perpetual securities were issued under the real estate investment trust’s (Reit’s) S$750 million multicurrency debt issuance programme established in November 2018.

The distribution rate of 4.1 per cent is fixed until the first reset date on Jan 21, 2031, based on a previous offer announcement released on Jan 12. Thereafter, the rate will be reset to the five-year Singapore Overnight Rate Average Overnight Indexed Swap plus an initial spread of 2.22 per cent.

Net proceeds from the issuance will be used to refinance existing borrowings and finance capital expenditure or acquisitions, and specifically refinance the Reit’s existing S$250 million fixed-rate subordinated perpetual securities.

DBS, OCBC and UOB acted as the joint lead managers and bookrunners for the issuance.

The Reit’s manager said that approval in-principle has been received from the Singapore Exchange (SGX) for the dealing, listing and quotation of the securities.

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The perps are expected to be listed on the SGX at 9 am on Thursday.

Units of AA Reit ended S$0.01 or 0.6 per cent lower at S$1.53 on Wednesday, before the announcement.

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