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LREIT prices $200 mil of perpetual securities at 4.20% per annum

By Felicia Tan

/ The Edge Singapore |

May 28, 2021 4:46 PM SGT

SINGAPORE (EDGEPROP) - The manager of Lendlease Global Commercial Trust REIT (LREIT) has successfully priced $200 million of perpetual securities on May 27. (See: Lendlease to commit to net zero carbon emissions by 2025)

The securities will be issued under LREIT’s $1 billion multicurrency debt issuance programme and will bear an initial rate of 4.20% per annum for the first five years. The first reset of the distribution rate will be on June 4, 2026, with subsequent resets occurring every five years thereafter.

The securities have attracted “strong demand” and were oversubscribed based on the initial target size of $150 million, which enabled the REIT to upsize the transaction to $200 million. The coupon of 4.20% was tightened from the initial guidance of 4.35%.

“We are very pleased to see the high level of institutional and retail investor confidence in LREIT’s stable financial profile and resilient portfolio as well as the strong market response to our inaugural perpetual securities. We thank investors for their strong support,” says Kelvin Chow, CEO of the manager.

Net proceeds of the securities will go towards financing potential acquisitions and investment opportunities within the group. LREIT’s aggregate leverage ratio is expected to improve from 35.4% as at March 31 to 31.3%. DBS Bank and Oversea-Chinese Banking Corporation (OCBC) were appointed joint lead managers.

Units in LREIT closed 0.5 cent higher or 0.7% up at 76 cents on May 27.

This article first appeared on The Edge Singapore.

Tags:

Lendlease Lendlease Global Commercial REIT LREIT DBS Bank OCBC Bank

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