Suntec Reit manager prices S$300m convertible bonds with S$50m upsize option

SINGAPORE - Suntec Reit's manager has priced S$300 million in convertible bonds, with an upsize option of S$50 million.

The bonds, which will mature on or about Nov 30, 2024, will bear interest of 1.75 per cent every year, ARA Trust Management (Suntec) Limited, which manages the Reit, said on Thursday morning (Nov 9).

Describing the issue as "well subscribed", it said that S$300 million in aggregate principal amount has been fully placed out to institutional investors and other investors. There is also an option to increase the size of the issue by up to S$50 million, which may be exercised within 30 days after the pricing date of Nov 8.

The bonds will be issued at 100 per cent of their principal amount, in denominations of S$250,000 each of integral multiples thereof.

The initial conversion price for each unit is S$2.189.

The net proceeds of about S$295.8 million (based on an issue size of S$300 million) will be used primarily for the partial refinancing of existing debt. The balance, if any, will be used for general corporate and working capital purposes, ARA Trust Management said in an earlier filing on Wednesday evening.

HSBC (Singapore Branch) is the sole lead manager and the underwriter for the issue of the convertible bonds.