Property

Frasers Property launches five-year green retail notes with a fixed interest rate of 4.49%

SINGAPORE: Frasers Property on Friday (September 9) launched S$420 million of five-year greenbacks which will bear a fixed interest rate of 4.49% per annum.

Up to S$300 million will be offered to retail investors through a public offering, while up to S$120 million will be offered to institutional and other investors.

The notes will be issued under the S$5 billion multi-currency debt issuance program of its wholly-owned subsidiary Frasers Property Treasury, and will be “unconditionally and irrevocably guaranteed” by Frasers Property, the company said.

The minimum investment amount under the public offering is S$1,000, with additional amounts in multiples of S$1,000.

The public offering opened for subscription at 9 a.m. on Friday and closes at noon next Wednesday.

DBS Bank, OCBC Bank and UOB are the joint lead managers and bookrunners of the offering. OCBC Bank is the offer’s green finance advisor.

Retail inquiries for the public offering can be made at ATMs of DBS Bank and POSB, OCBC Bank and UOB. They can also be made on participating banks’ online banking websites or mobile banking apps.

The total offering size may be increased up to S$650 million if oversubscribed in the public offering or placement.

Subscriptions under the public offering will be subject to a vote if the total subscriptions exceed the amount available.

“The final split between the public offering and the placement will be determined at the discretion of the issuer and guarantor in consultation with the co-lead managers and bookrunners of the offering,” Frasers Property said.

Unless already redeemed or purchased and cancelled, the Notes will be redeemed on September 16, 2027. Noteholders will receive semi-annual interest payments on March 16 and September 16 of each year, commencing March 16 of the ‘next year.

In a press release on Friday, the company said it was Singapore’s first corporate greenbacks.

“This sustainable financing initiative is in line with the group’s objective to finance the majority of its new sustainable real estate assets with green and sustainable financing by 2024”, he added.

Mr. Loo Choo Leong, Group Chief Financial Officer of Frasers Property, said: “We hope that the introduction of this inaugural corporate greenback issue in Singapore will help fuel further retail and institutional investor interest in the green finance.