Ascendas REIT to sell S$300 million seven-year exchangeables to yield 1.6%-2.1%, up 20%-25%

By Rebecca Melvin

New York, March 15 - Ruby Assets Pte., a special purpose vehicle of Ascendas Funds Management Ltd. and Ascendas Real Estate Investment Trust, has launched an offering of S$300 million of seven-year exchangeables that were talked to yield 1.6% to 2.1% with an initial conversion premium of 20% to 25%, according to market sources.

Citigroup Global Markets Singapore Pte. Ltd. is the bookrunner and lead manager of the issue.

The exchangeables will have a cash settlement feature, being an option for the issuer to pay cash in lieu of delivering exchange units to satisfy the exchange right of the holder.

The issue is expected to be assigned an AAA rating by Standard & Poor's - the only AAA-rated convertible in the Asia-Pacific universe, according to a note by Barclays Capital U.K.-based convertibles research.

Proceeds of the offering will be used to refinance existing borrowings, to finance acquisitions, to develop A-REIT properties and for general working capital.

The issuer is applying to list the exchangeables and exchange units on the Singapore Exchange for exchangeable securities.

Closing is expected by the end of March.

Ascendas is a business space and light industrial real estate investment trust with a diversified portfolio in Singapore.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.