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AIMS AMP Capital Industrial REIT (AA REIT) plans to issue $50 million worth of unsecured notes as part of its Medium Term Notes (MTN) Programme, with Standard Chartered Bank and United Overseas Bank (UOB) serving as joint lead managers and joint bookrunners for the issuance.
The notes will be offered in denominations of $250,000 at 100 percent issue price. Expected to be issued on 22 March 2017, the five-year notes will bear a fixed interest rate of 3.6 percent per year payable semi-annually in arrears until maturity on 22 March 2022.
“The issuance will go a long way to extending our debt maturity profile on top of our recent $100 million refinancing in August 2016,” said Koh Wee Lih, CEO of AIMS AMP Capital Industrial REIT Management Limited, the trust manager.
“The net proceeds from the issue will be used to partially repay the revolving credit facility due on November 2017, which was used to fund ongoing developments. This also enables us to diversify our funding sources and free up more undrawn available facilities for further growth.”
Following the issuance, AA REIT’s average debt maturity is expected to increase from 2.1 years as of 31 December 2016 to approximately 2.5 years on a pro forma basis.
This is the fourth time that the trust manager has tapped the MTN Programme to raise funding.
In August 2012, AA REIT issued $100 million four-year notes at 4.9 percent, but this was fully repaid on 8 August 2016. It also issued $30 million seven-year notes at 4.35 percent in December 2012 and $50 million five-year notes at 3.8 percent in May 2014, both of which remain outstanding.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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