Suntec REIT prices $175m 3.40% notes due 2031

Proceeds will be used for general corporate purposes.

Suntec Real Estate Investment Trust (Suntec REIT) has priced $175m in 3.40% fixed-rate notes due 2031.

The issuance will be made under Suntec REIT’s US$2 billion Euro Medium Term Securities Programme, first established in August 2013. The new notes, guaranteed unconditionally and irrevocably by HSBC Institutional Trust Services (Singapore) Limited in its capacity as trustee of Suntec REIT, will be issued at par in denominations of $250,000.

The fixed-rate notes bear interest at 3.40% per annum, payable semi-annually in arrears. Settlement is expected on 27 March 2025, with maturity on 27 March 2031.

DBS Bank Ltd. and United Overseas Bank Limited are joint lead managers for the transaction. Proceeds will be used for general corporate purposes, including refinancing debt, funding acquisitions or investments, and financing asset enhancement works.

The notes will be offered outside the United States under Regulation S of the U.S. Securities Act of 1933. In Singapore, they are being offered to institutional and accredited investors under Sections 274 and 275 of the Securities and Futures Act 2001.

An application will be made to list the notes on the Singapore Exchange (SGX-ST). SGX-ST’s in-principle approval does not indicate the merits of the notes or the issuer.

Under SGX Rule 704(31), the notes include a clause stating it would be an event of default if ESR Trust Management ceases to be Suntec REIT’s manager without an approved replacement. Approximately $4.38b in facilities could be affected by such an event, of which $4.19b is currently drawn.

The group clarified that the announcement is not an offer to sell or a solicitation to buy the notes in any jurisdiction where it would be unlawful.