AIMS Apac Reit proposes issue of S$125m in perpetual securities at 5.65%

THE trustee of AIMS Apac Reit has priced S$125 million of perpetual securities at 5.65 per cent, as part of the real estate investment trust's (Reit) S$750 million multicurrency debt issuance programme.

The Series 002 perps, which are unconditional, subordinated and unsecured, are expected to be issued on Aug 14, 2020, at par, the Reit's manager said in a regulatory update on Thursday.

The coupon is fixed at 5.65 per cent, but from the first reset date of Aug 14, 2025, it will be the swap offer rate plus the initial spread of 5.207 per cent.

United Overseas Bank (UOB) has been appointed the sole dealer of the issue.

Net proceeds from the proposed issue of the Series 002 perps will be used for the general corporate purposes of the Reit and its subsidiaries. This includes financing the general working capital, capital expenditure and investments of the group, and the partial or full refinancing of existing borrowings.

These borrowings may come from banks, including UOB and its affiliates who will receive a portion of the proceeds from the perp issue. UOB and its affiliates will continue to have additional relationships with the trustee, the Reit, its manager and/or respective affiliates.

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The manager said an application will be made to the Singapore Exchange for the permission to deal in, and the listing and quotation of, the Series 002 perps on the bourse. 

AIMS Apac Reit units were trading flat at S$1.21 as at 9.55am on Friday.