Parkway Life REIT Mount Elizabeth HospitalParkway Life REIT property in Singapore, Mount Elizabeth Hospital

Singapore-listed healthcare REIT, Parkway Life REIT, announced on 29 March that it has completed the issue of JPY3.3 billion (SGD40.7 million) six-year senior unsecured fixed-rate notes due 2022.

The notes have been issued under its SGD500 million multicurrency medium term note programme.

“We are pleased to complete the maiden issuance of JPY-denominated fixed-rate notes to an institutional investor in Japan at a very attractive pricing for a six-year debt tenor of 0.58% per annum”, ” said Yong Yean Chau, CEO of the REIT’s manager.

“The current flush of liquidity in Japan has opened a window of opportunity for the REIT to capitalise on the tightened credit spread of JPY bond by the domestic bond investors and to diversify away from bank facilities which is the REIT’s current sole source of debt funding”, he said.

Yong added that by tapping the capital market to issue fixed rated, the REIT is also able to eliminate near term refinancing and interest rate risk.

Proceeds from the notes issue will be used to pre-emptively refinance the REIT’s existing JPY loan due in 1Q 2017 and fund the recently announced acquisition of a nursing home facility in Japan.

Units of Parkway Life REIT last changed hands on the Singapore Exchange at SGD2.35.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.