Mapletree Investments issues $600m of fixed-for-life perps at 3.7%

SINGAPORE (THE BUSINESS TIMES) – Mapletree Investments’ wholly owned subsidiary Mapletree Treasury Services has launched and priced $600 million of 3.7 per cent perpetual securities under its US$5 billion (S$6.8 billion) Euro medium-term note programme.

In a press statement on Wednesday (Aug 4), the property developer and manager said it received orders in excess of $1 billion “with participation from about 60 high-quality investors, albeit being a new perpetual structure in the SGD (Singapore dollar) market”.

Proceeds from the offering will be used by Mapletree for general corporate purposes.

This represents the SGD market’s first subordinated fixed-for-life perpetual issuance, said the group. The securities will be unconditionally and irrevocably guaranteed by Mapletree.

Issued in denominations of $250,000, the perpetual securities are first callable at the issuer’s option on Aug 12, 2024. They have no coupon reset or step-up margin.

Distributions at a rate of 3.7 per cent per annum are payable semi-annually in arrears on a discretionary basis, and will be cumulative in accordance with the terms and conditions of the securities.

DBS Bank, HSBC and OCBC Bank acted as joint lead managers for the offering.

Ms Wendy Koh, group chief financial officer of Mapletree, expects the latest issuance to strengthen the group’s balance sheet and financial flexibility.

“Despite the current, challenging climate brought about by Covid-19, we went ahead to launch this first subordinated fixed-for-life perpetual securities in the SGD market. We are glad that it was well received by investors from both the institutional and high-net-worth investors,” she said.

“The success (of the offering) is a testament of investors’ recognition of Mapletree’s brand, strong credit and proven financial track record.”