Frasers Commercial Trust's China Square (Photo: REITsWeek)Frasers Logistics and Commercial Trust's Cross Street Exchange (Photo: REITsWeek)

Frasers Logistics & Commercial Trust (FLCT) has priced its maiden SGD150 million sustainability notes that will be issued under a newly established sustainability-linked financing framework.

It is also the first ever sustainability notes to be priced in the SGD bond market, said the REIT.

Proceeds raised from the notes are deployed towards the financing or refinancing of eligible sustainable projects.

The 7-year notes feature a fixed coupon rate of 2.18%, and will mature in 2028.

The deal was underpinned by exceptionally strong demand from institutional investors, with a final orderbook in excess of SGD450 million and orders from across 39 accounts, said the REIT.

In terms of investor distribution, 75% of the notes were allocated to fund managers and insurance accounts, 19% to banks and public sector accounts, and 6% to private banking accounts, it added.

DBS Bank OCBC Bank are the joint lead managers and bookrunners for the transaction.

The REIT’s full announcement on the notes can be viewed here.

Related: Frasers Logistics & Commercial Trust sees SGD13.5 million net inflow of institutional funds

FLCT was last done on the Singapore Exchange at SGD1.52, which currently implies a distribution yield of 5% according to data compiled on the Singapore REITs table.

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.