The manager of Mapletree Industrial Trust (MINT) has announced that DBS Trustee, in its capacity as trustee for MINT, has priced $300 million of perpetual securities at 3.15% under MINT's $2 billion Euro Medium Term Securities programme.
The securities will bear an initial rate of distribution of 3.15% per annum for the first five years, following which the distribution will reset on May 11, 2026, with subsequent resets every five years thereafter.
Fitch Ratings has assigned the securities a ‘BBB-’ rating.
Oversea-Chinese Banking Corporation (OCBC) was appointed as the sole lead manager and bookrunner.
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In a press release dated May 4, the manager of MINT states that the issuance of the securities was oversubscribed, with price tightening to 3.15% from the initial guidance of 3.375%.
Ler Lily, CFO of the manager, says, “The issuance is in line with our proactive capital m management strategy to diversify sources of funding. It will strengthen MINT’s balance sheet, provide funding for our development project and improve our financial flexibility for investment opportunities.”
Proceeds from the issuance of the securities will be used for general corporate purposes, including refinancing of existing debt.
Following the issuance of the Securities, MINT’s aggregate leverage ratio is expected to fall from 40.3% as at March 31 to 36.0%.
The securities are expected to be listed on the SGX-ST on or about 12 May 2021.
Units in MINT closed 2 cents or 0.71% lower at $2.81 on May 3.
