By Wendy Van Sickle
Columbus, Ohio, Aug. 29 – ARA Asset Management Ltd. said it will issue S$350 million of 5.6% subordinated perpetual securities at par on Wednesday.
Credit Suisse (Singapore) Ltd., DBS Bank Ltd., Oversea-Chinese Banking Corp. Ltd. and United Overseas Bank Ltd. are the joint lead managers.
The distribution rate will reset on Sept. 4, 2026 and every seven years after that at the Singapore dollar swap offer rate plus an initial spread of 406 basis points, a step-up margin of 300 bps and, if applicable, a change-of-control margin of 300 bps.
The securities are callable on Sept. 4, 2026 and on any semiannual distribution payment date after that. The securities are also callable in whole at par on any distribution payment date following a change of control.
The series 004 securities will be issued under the company’s S$1.5 billion multicurrency debt issuance program.
Proceeds will be used for general corporate purposes and financing investments.
The real estate investment manager is based in Singapore.
| Issuer: | ARA Asset Management Ltd.
|
| Issue: | Subordinated perpetual securities, series 004
|
| Amount: | S$350 million
|
| Maturity: | Perpetual
|
| Managers: | Credit Suisse (Singapore) Ltd., DBS Bank Ltd., Oversea-Chinese Banking Corp. Ltd. and United Overseas Bank Ltd.
|
| Coupon: | 5.6% initially; resets on Sept. 4, 2026 and every seven years after that at Singapore dollar swap rate plus initial spread of 406 bps, step-up margin of 300 bps and, if applicable, change-of-control margin of 300 bps
|
| Price: | Par
|
| Call option: | On Sept. 4, 2026 and on any semiannual distribution payment date after that; in whole at par on any distribution payment date following a change of control
|
| Announcement date: | Aug. 29
|
| Settlement date: | Sept. 4
|
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