Keppel DC REIT to dispose NetCo bonds, shares in $79.2m deal

KDCREIT first subscribed to the bonds on December 2021.

Keppel DC REIT has entered into a sale and purchase agreement for the proposed disposal of its NetCo Bonds, according to a bourse filing.

The REIT will dispose of 100% of its NetCo bonds and NetCo preference shares to an unnamed purchaser, according to a bourse filing.

The purchaser is estimated to pay $79.2m, of which $77.2m is in principal amount of NetCo Bonds, $1m is for accrued interest on the bonds, and $1m is the principal amount of the preference shares.

Keppel DC REIT first subscribed to the bonds on 22 December 2021. At the time, the bonds had a total subscription amount of $88.7m.

Under the terms of the bonds, Keppel DC REIT will receive $11m per annum— comprising both principal and interest— for a period of 15 years from the date of issuance of the NetCo Bonds.

Keppel DC REIT also subscribed for 100% of the preference shares issued by NetCo through KDCR Singapore 2 Pte. Ltd., for a subscription amount of S$1m. These preference shares entitled Keppel DC REIT to a 50% representation of the board of directors of NetCo.

NetCo owns various mobile, fixed, and fibre assets of M1.