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The $150 million raised marks Frasers Logistics & Commercial Trust’s inaugural notes issuance pursuant to its $1 billion Multicurrency Debt Issuance Programme.
Frasers Logistics & Commercial Trust (FLCT) has issued $150 million worth of sustainability notes under a newly established sustainable finance framework.
This marks FLCT’s inaugural notes issuance pursuant to its $1 billion Multicurrency Debt Issuance Programme.
In an SGX filing, FLCT’s manager revealed that it is also “the first ever sustainability notes to be priced in the SGD bond market, where proceeds raised are deployed towards the financing or refinancing of eligible sustainable projects as described in the framework”.
Notably, the notes were issued and guaranteed by FLCT Treasury, as trustee of the REIT.
The seven-year notes have a fixed coupon rate of 2.18% and are expected to mature in 2028.
DBS Bank and OCBC Bank served as “the joint lead managers and bookrunners for the transaction. OCBC Bank also acted as the sustainable finance advisor in the preparation of the framework”.
FLCT’s manager explained that the deal “was underpinned by exceptionally strong demand from institutional investors”. In fact, the final orderbook stood at over $450 million, with orders coming from 39 accounts.
Of the total notes, 75% were allocated to fund managers and insurance accounts, 19% were set aside to banks and public sector accounts, while 6% were allocated to private banking accounts.
“Sustainability has been integral to FLCT’s business activities since our inception, and we are delighted with this opportunity to match the diversification of our financing needs via the debt capital markets with sustainability notes,” said Robert Wallace, CEO of the REIT manager.
“We are thankful to investors for their strong support of FLCT’s maiden debt issuance, which illustrates confidence in FLCT’s financial strength and growth strategy,” he added.
On 15 April, FLCT has been assigned a ‘BBB+’ long-term issuer credit rating by S&P Global Ratings, with a stable outlook.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg