Singapore-listed retail and office REIT, Starhill Global REIT (SGX:P40U), announced on 19 May that it has priced its SGD125 million unsecured fixed rate notes with a tenor of eight years, maturing in May 2023.
The notes are expected to be issued on 26 May 2015 and assigned a rating of “BBB+” by Standard & Poor’s Rating Services, said the REIT in an official announcement.
“The net proceeds from the notes will be used to refinance Starhill Global REIT’s existing borrowings and/or for its working capital purposes”, it said.
The eight-year notes will carry a fixed interest rate of 3.40% per annum payable semi-annually in arrear, and is expected to replace the five-year SGD124 million 3.405% unsecured notes due in July 2015.
Following the issuance of the notes and debt repayment, the REIT’s average debt maturity will increase from 3.1 years to approximately 4.2 years.
Units of Starhill Global REIT are currently listed on the Singapore Exchange at SGD0.87.