ESR-REIT prices $125m subordinated perpetual securities at 5.75%

Proceeds will be used to refinance or repay ESR-REIT’s existing borrowings.

Perpetual (Asia) Limited, acting as trustee for ESR-REIT, has successfully launched and priced $125m in aggregate principal amount of subordinated perpetual securities. The securities, designated as Series 011, carry a distribution rate of 5.75% per annum.

The Series 011 Securities will be issued under the ESR-REIT’s $750m Multicurrency Debt Issuance Programme. DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited are acting as joint lead managers for the issuance.

The Series 011 Securities are direct, unconditional, subordinated, and unsecured obligations of the Issuer. They rank pari passu with parity obligations but are subordinated to other creditors, except in the case of parity obligations.

The securities are perpetual with no fixed maturity date. From 20 March 2025 until 19 March 2030, the securities will offer a fixed distribution rate of 5.75% per annum, payable semi-annually in arrears. After 20 March 2030, the distribution rate resets every five years to the prevailing five-year SORA-OIS plus a spread of 3.512%.

Net proceeds from the issuance of the Series 011 Securities, after deducting expenses, will be used to refinance or repay existing borrowings of ESR-REIT and its subsidiaries. This includes the repayment of the Issuer’s outstanding $75.25m Fixed Rate Subordinated Perpetual Securities. Proceeds may also be used to finance or refinance acquisitions, investments, development projects, asset enhancement works, and to meet general working capital and capital expenditure needs of the Group.

An application will be made to the Singapore Exchange Securities Trading Limited (SGX-ST) for the listing and quotation of the Series 011 Securities.

The Series 011 Securities are expected to be issued on 20 March 2025 and listed on the SGX-ST on 21 March 2025.

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