ASCENDAS Real Estate Investment Trust (Ascendas Reit) has priced its S$300 million green subordinated perpetual securities at an initial annual distribution rate of 3 per cent, the Reit manager said on Thursday.

 

The securities are the second green issuance under Ascendas Reit' s S$7 billion euro medium-term securities programme, and are the first real estate green perpetual securities in Asia.

 

They are expected to be issued on Sept 17.

 

The order book was in excess of S$725 million, with orders from across 57 accounts, Ascendas Funds Management said in its statement.

 

The first distribution rate reset will be Sept 17, 2025, with subsequent resets every five years after that. The reset rate of distribution will be the swap offer rate plus the initial spread of 2.477 per cent.

 

The distribution will be payable semi-annually in arrear on a discretionary basis, starting on March 17, 2021 and occurring on March 17 and Sept 17 each year.

 

Net proceeds from the issue will be used for financing or refinancing, in whole or in part, certain projects defined in the pricing supplement, undertaken by Ascendas Reit and its subsidiaries in accordance with the Ascendas Reit Green Finance Framework.

 

Said William Tay, chief executive officer and executive director of the Reit manager: " We will be incorporating more ' green' initiatives into our core business strategy, for example in the areas of financing, property development and asset improvements. This is an important commitment on our part to contribute to conserving the environment."

 

OCBC was the sole lead manager, bookrunner and green finance adviser for this transaction.