KEPPEL Reit : K71U 0% has priced S$200 million notes with a fixed coupon rate of 3.72 per cent per annum due 2026, the Reit manager announced in a bourse filing on Tuesday (Nov 7).

The Series 006 notes are expected to be issued on Nov 15 at an issue price of 100 per cent in denominations of S$250,000. Interest on the notes will be payable semi-annually.

DBS has been appointed the sole lead manager and bookrunner of the offering of the Series 006 notes.

The manager of the real estate investment trust (Reit) said that net proceeds from the notes will go towards financing and refinancing acquisitions and or investments of Keppel Reit, as well as any asset enhancement works initiated by the Reit’s trustee.

The net proceeds may also go towards on-lending to any trust, fund or entity in which Keppel Reit has an interest; they may also be used for the general working capital purposes of the Reit and for refinancing its borrowings and those of its subsidiaries.

The notes contain a condition in which a default may occur if the current manager of the Reit is removed and a replacement or substitute manager is not appointed according to the terms of the trust deed.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

If this happens, the aggregate level of facilities, debt issues and borrowings that may be affected stands at about S$2.3 billion, excluding interest and fees, as at Nov 7, 2023.

Keppel Reit’s units fell 1.8 per cent or S$0.015 to S$0.82 on Tuesday before the announcement.