AIMS AMP Capital Industrial REIT announced on 17 March that it will be issuing SGD50 million (USD35 million) in 3.6% fixed rate notes due March 2022.
The notes, which will be distributed under REIT’s medium term notes (MTN) programme, will be issued in denominations of SGD250,000 at 100% of their principal amount.
The five-year notes will bear interest at a fixed rate of 3.6% per annum payable semi-annually, until maturity on 22 March 2022.
“The net proceeds from the issue will be used to partially repay the revolving credit facility due in November 2017 which was used to fund ongoing developments”, said Koh Wee Lih, CEO of the REIT’s manager.
“This also enables us to diversify our funding sources and free up more undrawn available facilities for potential further growth”, he added.
Following this issue, the REIT’s average debt maturity will increase from 2.1 years to approximately 2.5 years.
The notes are expected to be issued on 22 March 2017.
Units of AIMS AMP Capital Industrial REIT are currently trading on the Singapore Exchange at SGD1.36.