Singapore’s ESR will forgo redemption, allow rate to reset

Chicago, Sept. 30 – ESR-Logos Funds Management (S) Ltd. as manager of ESR-Logos REIT announced that the perpetual securities issued in 2017 by RBC Investor Services Trust Singapore Ltd. with an upcoming first call date will be allowed to reset, according to a press release.

The first reset date is Nov. 3.

The rate will reset to the prevailing swap offer rate plus 260 basis points on that date.

The company cited macroeconomic conditions and the interest rate environments as the rationale for its decision.

From a cost perspective, the company said it is not in its interest to issue new perpetual securities.

The company has the right to redeem the securities on any distribution payment date going forward.

ESR-Logos has ample committed debt facilities that can be drawn to redeem the securities; however, this would increase leverage and reduce the debt headroom for acquisition opportunities, asset enhancement initiatives and/or redevelopment opportunities.

The issuer is a real estate investment trust company based in Singapore.

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