AIMS AMP Capital Industrial Reit to raise S$50 million with five-year fixed rate notes

Mr Koh Wee Lih, chief executive officer of AIMS AMP Capital Industrial Reit, said the issuance would go a long way to extend the company's debt maturity profile.
Mr Koh Wee Lih, chief executive officer of AIMS AMP Capital Industrial Reit, said the issuance would go a long way to extend the company's debt maturity profile. PHOTO: AIMS AMP CAPITAL INDUSTRIAL REIT

SINGAPORE - AIMS AMP Capital Industrial Reit will issue S$50 million five-year notes at a fixed rate of 3.60 per cent per annum payable semi-annually in arrears, the company said in a release on Friday.

The notes are expected to be issued on Mar 22, 2017 and will mature in 2022.

"The issuance will go a long way to extending our debt maturity profile on top of our recent S$100 million refinancing in August 2016," said company chief executive officer Koh Wee Lih. "The net proceeds from the issue will be used to partially repay the revolving credit facility due in November 2017 which was used to fund ongoing developments," Mr Koh added. "This also enables us to diversify our funding sources and free up more undrawn available facilities for potential further growth."

This is the fourth time AIMS AMP Capital Industrial Reit Management has used its Medium Term Notes programme to raise debt.

AA REIT raised S$100 million with the four-year 4.90 per cent fixed rate notes issue in August 2012, S$30 million with the seven-year 4.35 per cent fixed rate notes issue in December 2012 and S$50 million with the five-year 3.80 per cent fixed notes bond issue in May 2014.