The rate of interest payable to noteholders will be reduced by 25 basis points to 3.95% when any credit rating agency assigns an investment grade rating to both the REIT and the notes within 18 months of its issuance.
OUE Commercial REIT (OUE C-REIT) has, through its wholly-owned subsidiary, OUE CT Treasury, issued $100 million worth of fixed rate notes with a 4.20% coupon. The five-year notes will be due in 2027 and are payable semi-annually in arrears.
The notes come with a coupon step-down trigger upon the bonds’ re-rating to investment grade.
