StarHub prices S$200 million perpetual securities at 3.35%

Net proceeds from the issue will be used to finance the group’s general corporate funding requirements and investments

StarHub has priced S$200 million in subordinated perpetual securities at 3.35 per cent under its S$2 billion multi-currency debt issuance programme.

The securities will be issued in denominations of S$250,000 each, the telco said on Tuesday (Oct 7).

DBS and UOB have been appointed as joint lead managers and bookrunners for the perpetual securities, which are expected to be issued on or around Oct 14.

StarHub said the net proceeds from the issue will be used to finance its “general corporate funding requirements or investments”.

This could include “financing new acquisitions and investments, refinancing of existing borrowings and perpetual securities, working capital (and) capital expenditure”.

StarHub chief executive Nikhil Eapen in August said that the telco would be aggressive on acquisitions. This came amid market-wide consolidations, and as the group posted a 41.7 per cent year-on-year decline in net profit for the first half of 2025.

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StarHub said the distribution for the perpetual securities will be payable semi-annually in arrear on a discretionary basis.

The distribution rate will be subject to a step-up of 1 per cent per annum from Oct 14, 2032, the date of the first distribution rate reset. Subsequent resets will occur every seven years after.

The securities may be redeemed at StarHub’s option in whole on Oct 14, 2032, or on any subsequent payment date.

StarHub shares fell S$0.01 or 0.9 per cent to S$1.13 on Tuesday, before the news.