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Frasers Centrepoint announced in an SGX filing that its wholly-owned subsidiary FCL Treasury will issue S$700 million subordinated perpetual bonds under its S$3 billion multi-currency debt issuance programme.
The bonds (Series 005 Securities) have an interest rate of 5 percent and are guaranteed by FCL Treasury’s parent firm. According to media reports, this is the largest non-bank perpetual deal in Singapore since 2012.
The company has appointed DBS Bank and Maybank Kim Eng Securities as joint global coordinators for the securities for this purpose.
Aside from DBS and Maybank, Standard Chartered Bank, United Overseas Bank (UOB), Deutsche Bank AG’s Singapore Branch, Australia and New Zealand Banking Group (ANZ), as well as Oversea-Chinese Banking Corp (OCBC) have been named as joint lead managers and joint bookrunners for the bonds.
Furthermore, Frasers said that TCC Prosperity(TCCPL) has agreed to subscribe S$300 million in aggregate principal amount of these securities.
The net proceeds from the sale of the bonds will be used for general corporate purposes, such as funding investments, refinancing existing loans and as general working capital for FCL Treasury, Frasers Centrepoint and its associated entities as well as joint-venture firms.
The Series 005 Securities are expected to be issued on 9 March 2015. They are perpetual and have no fixed final maturity date.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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