Singapore’s first and only Shari’a compliant industrial REIT Sabana (SGX:M1GU) has announced that it plans to issue SGD100,000,000 worth of 4.25% fixed periodic distribution trust certificates due that will be due in 2019.

These certificates, well referred to as known as “Islamic bonds” in investment circles, will be issued by Sabana Sukuk Private Limited, a wholly-owned subsidiary of the REIT in Singapore.

According to Sabana REIT, net proceeds arising from the issue of trust certificates will be used for the purposes of refinancing the existing borrowings of the REIT and funding the acquisition of a property located at 10 Changi South Street 2. The six-storey warehouse with ancillary office space will be acquired for SGD50 million in a buy-and-leaseback arrangement with vendors Adviva Distribution.

An application to the Singapore Exchange has been made for the listing and quotation of the trust certificates

Units of Sabana REIT are currently listed on the Singapore Exchange at SGD1.01.