Starhill Global REIT's Ngee Ann City property. (Photo: REITsWeek)

Starhill Global REIT has priced SGD125 million notes due in 2028.

The notes bear a coupon rate of 2.23% and are issued as Series 003 under the REIT’s SGD2 billion multicurrency debt issuance programme established in January 2020.

CIMB Bank Berhad, Singapore Branch and DBS Bank have been appointed as joint lead managers and bookrunners of the notes issue.

Coupon on the notes are payable semi-annually in arrear, and have a tenor of seven years.

The notes may be redeemed at the option of the issuer in whole or in part on any interest payment date prior to the maturity date on 13 September 2028.

Proceeds from the notes will be deployed to refinance existing borrowings of Starhill Global REIT, meet capital expenditure requirements, or for working capital purposes.

The issue is not expected to have any material impact on the gearing of Starhill Global REIT.

Starhill Global REIT was last done on the Singapore Exchange at SGD0.64, which currently implies a distribution yield of 6.47% according to data compiled on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.