Ascendas REIT's property at 9 Changi South Street 3, Singapore. (Photo: REITsWeek)

Ascendas REIT announced on 3 August that it has issued HKD923 million in 2.77% notes due in 2026 through HSBC Institutional Trust Services.

DBS Bank has been appointed the sole lead manager and bookrunner for the notes that will mature on 3 August 2026, and will bear a fixed interest rate of 2.77% per annum payable annually in arrear.

The notes are issued under the Singapore-listed industrial REIT’s SGD5 billion multicurrency medium term note programme that was established in 20 March 2009. The programme’s limit was increased from SGD1 billion to SGD5 billion in March 2015.

Swap transactions arrangements to swap the Hong Kong dollar proceeds of the notes into Singapore dollars of approximately SGD162.9 million for the tenure of the notes have been arranged, said the REIT.

Net proceeds arising from the issue of the notes will be used towards a number of possible initiatives including financing of acquisitions, asset enhancement initiatives, or for general working capital purposes.

The notes have been assigned a rating of “A3” by Moody’s Investors Service.

Units of Ascendas REIT finished the trading day about 1.6% lower from its previous close on the Singapore Exchange to end at SGD2.46.

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.