Singapore’s First Corporate Green Retail Notes Issuance to Fund Sustainable Projects
Frasers Property announced on Thursday, September 8, the pricing of up to S$420 million in 5-year green notes at an interest rate of 4.49%. These notes are part of the company’s S$5 billion multicurrency debt issuance programme and have an upsize option, allowing the total amount to increase to a maximum of S$650 million in the event of oversubscription.
The initial offering, aimed at retail and institutional investors, includes a public offering of up to S$300 million for retail investors and a placement of up to S$120 million for institutional investors. The notes will be due for redemption on September 16, 2027, unless redeemed or purchased and cancelled earlier, with semi-annual interest payments due on March 16 and September 16 each year, starting March 16, 2023.
This marks Singapore’s first corporate green retail note offering, with proceeds expected to be between S$417.5 million and S$648 million. The funds will be used to finance or refinance green projects that meet the criteria outlined in Frasers Property’s green finance framework.
Loo Choo Leong, Group CFO of Frasers Property, expressed optimism that this issuance would increase interest in green finance from both retail and institutional investors. “The proceeds will help us finance our sustainable property assets,” he added.
The public offering opens on Friday, September 9, and will close on September 14. Retail applications can be made through participating banks DBS (including POSB), OCBC, and UOB. The notes are not available for retail investors in the European Economic Area or the UK.
DBS, OCBC, and UOB are the joint lead managers and bookrunners for the offer, with OCBC acting as the green finance adviser.
Shares of Frasers Property (TQ5) rose by 1.9% to S$1.08 on Thursday, ahead of the announcement.
