Ascott REIT has priced SGD150 million in aggregate principal amount of fixed rate perpetual securities.
The securities will be issued by DBS Trustee Limited, in its capacity as trustee of Ascott REIT.
Oversea-Chinese Banking Corporation Limited has been appointed as sole lead manager and bookrunner for the issue of the perpetual securities.
Ascott REIT was assigned a “BBB” senior unsecured credit rating by Fitch Ratings in September 2017, which was affirmed in August 2019.
Net proceeds arising from the issue of the securities will be used by Ascott REIT for general corporate purposes.
This included redeeming the Ascott REIT SGD150 million 5.00% perpetual securities with first call date on 27 October 2019.
The securities will be issued in denominations of SGD250,000, will be perpetual, and will confer a right to receive distribution payments at a rate of 3.88% per annum.
The first distribution rate reset falls on 4 September 2024, and subsequent resets will occur every five years thereafter.
The distribution will be payable semi-annually in arrears on a discretionary basis.
The securities are expected to be issued on or around 4 September 2019.