Frasers Property upsizes green notes to $500m following strong demand

Singaporean investors made up 98 per cent of the demand of the initial placement. PHOTO: BUSINESS TIMES FILE

SINGAPORE - Frasers Property on Thursday announced that it would be upsizing its five-year green notes from $420 million to $500 million after noting that demand for its earlier offer was oversubscribed.

The final public offering will now stand at $350 million, while the final placement tranche is $150 million. The coupon rate remains at 4.49 per cent.

All valid applications under the public offering shall receive at least some allocation of the notes, said the group in its bourse announcement.

This comes after the group's earlier offer, which had been open for applications for six days, was 1.48 times subscribed for its initial public offer and 2.04 times subscribed for the initial placement.

According to deal statistics seen by The Business Times, Singaporean investors made up 98 per cent of the demand for the initial placement.

Of the total placement size of $150 million, 74 per cent was taken up by private banks, 14 per cent by fund managers, insurers or pension funds, and 12 per cent allocated to banks.

The total valid applications for the notes amounted to $689.3 million, which represents a subscription rate of about 1.64 times of the initial offer.

Unless previously redeemed or purchased and cancelled, the notes will be redeemed on Sept 16, 2027. Note holders will receive semi-annual interest payments on March 16 and Sept 16 each year, starting on March 16 next year.

The bonds were expected to be issued on Friday and would commence trading on the mainboard of the Singapore Exchange at 9am under the stock code "EHZB". Each board lot would comprise $1,000 in principal amount of the bonds.

Frasers Property group chief financial officer Loo Choo Leong said: "We are pleased to receive such strong investor interest in our inaugural green note issuance.

"We would like to thank investors for their support in our journey as we continue to build a green and sustainable portfolio of properties and projects across our business value chain." THE BUSINESS TIMES

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