The manager of Frasers Logistics & Commercial Trust (FLCT) has, on July 15, issued $150 million worth of sustainability notes due July 26, 2028.
The notes were issued and guaranteed by FLCT Treasury, as trustee of the REIT.
The notes were issued under a newly established sustainable finance framework, and were the first-ever sustainability notes to be priced in the SGD bond market.
Proceeds will go towards the financing or refinancing of eligible sustainable projects described in the framework.
The Series 001 notes will carry a coupon of 2.18% per annum and will be drawn down under FLCT’s $1 billion Multicurrency Debt Issuance Programme.
The notes will be issued in registered form and in denominations of $250,000 each.
The notes are expected to be issued on July 26.
According to FLCT, the deal was underpinned by “exceptionally strong demand” from institutional investors, leading to an orderbook of over $450 million, with orders across 39 accounts.
See also: Frasers Property suffers loss of $45.7 mil for 2H, FY20 earnings down 66.4% to $188.1 mil
Of the notes, 75% were allocated to fund managers and insurance accounts, 19% to banks and public sector accounts, and 6% went 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. 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,” says Robert Wallace, CEO of the manager.
On April 15, S&P Global Ratings assigned a “BBB+” long-term issuer credit rating with stable outlook to the REIT.
DBS Bank and Oversea-Chinese Banking Corporation (OCBC) acted as joint lead managers and bookrunners.
Units in FLCT closed flat at $1.52 on July 15.
Photo: FLCT
