Link REIT has issued CNH 650 million worth of three-year offshore Renminbi (CNH) notes.
The annual coupon rate is 2.8%, which is the lowest coupon CNH debt issuance achieved amongst Hong Kong real estate companies, said the REIT.
The three-year issue, which will be due on 24 May, 2024, is Link REIT’s maiden issuance of CNH notes.
Proceeds of the debt will be used for general corporate purposes.
The notes are rated “A” by Fitch Ratings.
“This issuance is our first tap into the CNH debt market and we are delighted it was well received by investors”, said George Hongchoy, Link REIT’s CEO.
“Together with our existing debt portfolio with HKD, AUD and GBP financing, we have achieved further diversity and flexibility in capital management”, he added.
“Institutional investors continue to show interest in high quality credits with strong name-brand recognition in the CNH market,” said Conan Tam, head of Asia Pacific Debt Capital Markets at Bank of America, which was the sole bookrunner.
Link REIT currently holds A issuer ratings from major international credit rating agencies, and these are namely A2/Stable from Moody’s Investors Service, A/Stable from Standard & Poor’s and A/Stable from Fitch Ratings.
Link REIT was last done on the HKSE at HKD75.30, which implies a distribution yield of 3.76% according to data compiled on the Hong Kong REITs table.