Croesus Retail Trust's Fuji Grand Natalie. (Photo: Croesus Retail Trust)Croesus Retail Trust's Fuji Grand Natalie. (Photo: Croesus Retail Trust)

Singapore-listed Croesus Retail Trust announced on 29 September that it has reopened the existing SGD60 million 5.0% fixed rate notes due 2020 issued in April 2016, and intends to issue a new tranche of SGD50 million 5.0% fixed rate notes due in the same year.

The notes will be issued under the Euro medium term note programme that was established in January 2014.

DBS Bank, RHB Securities, and United Overseas Bank Limited have been appointed as the joint lead managers for the issue, which will be made in denominations of SGD250,000.

The notes will bear interest of 5.0% per annum payable semi-annually, and mature in April 2020.

The issue date of the notes is currently expected to be on or about 6 October 2016.

The manager of Croesus Retail Trust has entered into swap transactions to swap the SGD proceeds of the notes into JPY proceeds, at the forward exchange rate of JPY74.50 to SGD1 at a JPY fixed interest rate of 2.97% per annum.

Net proceeds arising from the issue will be used to refinance Croesus Retail Trust’s existing borrowings and capital expenditure, and for general working purposes.

Units of Croesus Retail Trust finished the trading day about 1.1% lower from its previous close on the Singapore Exchange to end at SGD0.855.

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.