OUE REIT Issues its First 7-Year Investment Grade Green Notes Due 2031 at 3.90%
We are pleased to share that our wholly-owned subsidiary, OUE REIT Treasury Pte. Ltd. has successfully issued its maiden 7-year green notes (the “Notes”) of S$180 million at a 3.90% fixed rate due 2031. The Notes have been rated “BBB-” by S&P Global Ratings.
Key Highlights:
✅Achieved peak orderbook of S$320 million at initial price guidance of 4.15%
✅ Offer subsequently upsized from initial target size of S$100 million to S$180 million
✅ Final pricing tightened to 3.90%, representing a 25 basis points (“bps”) compression from the initial price guidance
✅ Final orderbook stood at S$300 million (good at reoffer), representing an oversubscription of 1.7 times, with 70% allocated to institutional investors
✅ Average term of debt lengthened to 3.2 years from 2.7 years as of 30 June 2024 on a pro forma basis
✅ Only 6.8% of the total debt is due in 2025 post refinancing
✅ Weighted average cost of debt reduced from 4.7% per annum (“p.a.”) as of 30 June 2024 to 4.6% p.a. on a pro forma basis
Mr Han Khim Siew, Chief Executive Officer of the Manager, said, “In a market where it is uncommon for non-government-linked companies to access tenors beyond five years, the successful issuance of our first 7-year note, alongside the competitive coupon rate of 3.9% — our lowest ever for a bond — marks a significant milestone for OUE REIT. We are deeply encouraged by the robust support from institutional investors. Their strong participation, coupled with substantial oversubscription, speaks volumes about investor confidence in our healthy capital structure, stable asset performance, and positive business outlook. Looking ahead, we will continue to align our financing requirements with sustainable initiatives and remain focused on creating value for our stakeholders through prudent capital management.”
Read more: https://www.theedgesingapore.com/news/reits/oue-reit-issues-first-seven-year-green-notes-180-million-due-2031-390
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