SINGAPORE: Frasers Property on Friday (Sep 9) launched S$420 million worth of five-year green notes that will carry a fixed interest rate of 4.49 per cent per annum.
Up to S$300 million will be offered to retail investors in a public offer, while up to S$120 million will be offered to institutional and other investors.
The notes will be issued under its wholly-own subsidiary Frasers Property Treasury’s S$5 billion multicurrency debt issuance programme, and will be “unconditionally and irrevocably guaranteed” by Frasers Property, said the company.
The minimum investment amount under the public offer is S$1,000, with further amounts in multiples of S$1,000.
The public offer opened for subscription at 9am on Friday and closes at noon next Wednesday.
DBS Bank, OCBC Bank and UOB are the joint lead managers and bookrunners of the offer. OCBC Bank is the green finance adviser for the offer.
Retail applications for the public offer may be made at the ATMs of DBS Bank and POSB, OCBC Bank and UOB. They can also be done on the participating banks’ Internet banking websites or their mobile banking apps.
The total offer size may be increased to up to S$650 million if it is oversubscribed in the public offer or the placement.
Subscriptions under the public offer will be subject to balloting if the total subscriptions exceed the amount available.
“The final allocation between the public offer and placement shall be determined at the discretion of the issuer and guarantor in consultation with the joint lead managers and bookrunners of the offer,” said Frasers Property.
Unless previously redeemed or purchased and cancelled, the notes will be redeemed on Sep 16, 2027. Noteholders will receive semi-annual interest payments on Mar 16 and Sep 16 each year, starting on Mar 16 next year.
In a press release on Friday, the company said this was Singapore’s first corporate green retail notes.
“This sustainable financing initiative is in line with the group’s goal of financing the majority of its new sustainable property assets with green and sustainable financing by 2024,” it added.
Mr Loo Choo Leong, group chief financial officer of Frasers Property said: “We hope the introduction of this inaugural corporate green retail notes issuance in Singapore will help further fuel interest from both retail and institutional investors in green finance.”