Fri, Oct 11, 2019 – 9:11 AM
CAPITALAND has priced a new S$500 million fixed rate perpetual issue at 3.65 per cent.
Sold on Thursday, orders exceeded S$900 million which allowed the notes to be priced lower than the initial guidance of around 3.85 per cent.
The deal is a perpetual issue non-callable five years whch means the issuer has the right but not the obligation to call or redeem the perps in the fifth year.
If the issue is not redeemed in the fifth year, the interest rate gets reset in the fifth year and every five years thereafter based on the prevailing five-year swap offer rate (SOR) plus the initial spread of 2.2 per cent and (from year 10) the step-up margin of 1 per cent.
The first reset rate means the prevailing five-year SOR plus the initial spread of 2.2 per cent.
The subsequent reset rate means the prevailing five-year SOR plus the initial spread plus the step-up margin of 1 per cent.
The issuer is CapitaLand Treasury Limited, a unit of CapitaLand which is one of Asia's largest property groups. CapitaLand is the issue's guarantor.
The proceeds from the issue will be used for refinancing existing borrowings, financing investments and general corporate
purposes, the company said.