Sembcorp unit prices S$300 million fixed rate notes at 3.55%

The offering is close to seven times oversubscribed against the target issuance size

Sembcorp Industries announced on Wednesday (Jun 25) that its wholly owned subsidiary Sembcorp Financial Services (SFS) had priced the issuance of S$300 million worth of fixed rate guaranteed notes.

The issuance comes under the S$5 billion Euro Medium Term Note programme launched by the energy and urban solutions provider and SFS in July 2023.

Due on Jan 2, 2046, the notes will be issued on Jul 2, 2025, at an interest rate of 3.55 per cent per annum, payable semi-annually on Jan 2 and Jul 2 each year.

The payment obligations of SFS will be unconditionally and irrevocably guaranteed by Sembcorp.

The notes are expected to list on the Singapore Exchange on or around one business day after the issue date. DBS, OCBC and UOB are the managers for the issuance.

The offering was close to seven times oversubscribed against the target issuance size, with strong demand from a diverse base of high-quality fixed income investors including fund managers, insurance companies, central banks and agencies, Sembcorp said.

The company described the issuance as the longest-tenured offering of unrated corporate bonds by a Singapore company in the market in recent times.

Proceeds from the issuance will finance the general corporate purposes and working capital requirements of Sembcorp and its subsidiaries, after issue expenses are deducted, the group said.

The counter ended Tuesday unchanged at S$6.85.

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