OUE Commercial bond issue oversubscribed at S$250 million in orders

By Mary-Katherine Stinson

Lexington, Ky., May 5 – OUE Commercial REIT Management Pte. Ltd., acting as manager for OUE Commercial Real Estate Investment Trust, announced that OUE CT Treasury Pte. Ltd.’s bond issue of S$100 million of 4.2% notes due May 5, 2027 (ISIN: SGXF36851818) was met with strong demand from investors and closed with S$250 million in orders, according to multiple notices on Thursday.

The notes are guaranteed by DBS Trustee Ltd., the trustee of OUE Commercial REIT.

The notes will be listed on the Singapore Exchange effective May 6.

As previously reported, the notes were issued under the company’s S$2 billion multicurrency debt issuance program.

The interest rate may step down by 25 basis points to 3.95% if OUE and the notes receive an investment-grade rating. The rate is also permitted to step back to 4.2% if the rating is not maintained. There is no limitation to the number of times the rate may be adjusted between the two under the aforementioned circumstances.

OUE may elect to redeem the notes early on any interest payment date in whole, but not in part, at par plus interest for taxation reasons or if the aggregate principal amount outstanding is less than 10% of the initial issue. The notes will be subject to mandatory redemption at par plus interest if a delisting or trading suspension occurs.

Oversea-Chinese Banking Corp. Ltd. was the lead manager and bookrunner for the Regulation S offering.

Proceeds will be used to refinance borrowings, for general corporate funding and/or for other working capital purposes of OUE and its subsidiaries.

The commercial real estate investment trust is based in Singapore.

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