Reflects strong reception for the offering of S$700 million principal amount which was subscribed 2.7 times
SINGAPORE – Mapletree Investments Pte Ltd (“Mapletree” or “the Group”), a leading real estate development, investment and capital management company, is pleased to announce that its wholly-owned subsidiary, Mapletree Treasury Services Limited (the “Issuer”), has launched and priced S$700 million principal amount of 3.95% perpetual securities (the “Securities”), to be issued pursuant to its US$5 billion Euro Medium Term Note Programme (“EMTN Programme”). The Securities will be unconditionally and irrevocably guaranteed by Mapletree.
The Securities is the largest S$ denominated perpetual issuance this year. Earlier this year in January, the Group issued S$625 million principal amount of 4.50% perpetual securities.
The offering of the Securities was very well received by investors. Mapletree received orders worth over S$1.9 billion, being a subscription rate of 2.7 times, with participation from more than 70 high quality investors.
The Securities, which will be issued in denominations of S$250,000, will be perpetual, first callable at the Issuer’s option on 12 November 2022, and will confer the right to receive distribution payments at a rate of 3.95% per annum, with a distribution rate reset on 12 November 2027 and every 10 years thereafter. The distribution rate will be subject to a one-time step-up of 1% per annum on 12 November 2027. The distribution will be payable semi-annually in arrear on a discretionary basis and will be cumulative in accordance with the terms and conditions of the Securities.
Proceeds from the offering of the Securities will be used to redeem Mapletree’s outstanding S$600 million 5.125% perpetual securities on its first call date of 25 July 2017 and for other general corporate purposes.
Mr Wong Mun Hoong, Group Chief Financial Officer of Mapletree said, “The current liquidity of the SGD debt capital market allowed us to successfully launch and price the offering today. On the back of robust demand from the capital market and strong support by investors, we managed to achieve a sub-4% pricing level. This offers us significant savings against the existing 5.125% perpetual issue to be refinanced. We are very pleased with this positive outcome. The successful offering is a testament of investors’ recognition of Mapletree’s brand name, financial track record and proven strategies.”
DBS Bank Ltd., HSBC and OCBC are joint lead managers for the offering.
Application will be made to the Singapore Exchange Securities Trading Limited (the “SGX-ST”) for permission to deal in, and for a quotation of, the Securities. Admission to the Official List of the SGX-ST and quotation of the Securities on the SGX-ST are not to be taken as an indication of the merits of the Issuer, Mapletree, the EMTN Programme or the Securities.
