Parkway Life Reit prices 3.5b yen fixed rate notes due 2024

SINGAPORE - The manager of Parkway Life Real Estate Investment Trust (Reit), Parkway Trust Management, has priced 3.5 billion yen (around S$42.1 million) of six year, senior unsecured notes at a coupon of 0.65 per cent under an existing S$500 million multicurrency debt issuance programme, it announced on Wednesday (Feb 21).

The notes issue is expected to be completed on Feb 26.

Proceeds from the bonds, which will be sold at par and mature on Feb 26, 2024, will be used to refinance existing borrowings of Parkway Life Reit.

DBS Bank has been appointed the sole lead manager and bookrunner for the notes.

"With the US Federal Reserve signalling the possibility of more interest rate hikes this year, it is crucial to timely term out Parkway Life Reit's maturing loans to mitigate refinancing risks," Yong Yean Chau, chief executive of Parkway Trust Management said.