By Marisa Wong
Madison, Wis., Aug. 15 - Axis Real Estate Investment Trust's wholly owned subsidiary, Axis REIT Sukuk Bhd., issued RM 155 million of Islamic medium-term notes on Thursday, according to an announcement by trust manager Axis REIT Managers Bhd.
The notes make up the second issue under the trust's RM 300 million sukuk program established in June 2012. The first issue totaled RM 110 million and was issued in July 2012.
The second issue sukuk priced in five tranches as follows:
• RM 70 million of 91/2-year notes with an expected maturity of seven years;
• RM 60 million of 71/2-year notes with an expected maturity of five years;
• RM 15 million of 71/2-year notes with an expected maturity of five years;
• RM 5 million of 71/2-year notes with an expected maturity of five years; and
• RM 5 million of 71/2-year notes with an expected maturity of five years.
The blended annual financing rate for the five-year and seven-year sukuk are 4.13% and 4.18%, respectively.
The five tranches received long-term ratings of AAA, AAA, AA1, AA2 and AA3, respectively, by RAM Rating Services Bhd.
Proceeds will be used mainly to refinance the fund's existing financing facilities.
The Petaling Jaya, Malaysia-based trust said that with this second sukuk issue, it has increased its weighted average debt maturity to 4.2 years, matching its assets portfolio's weighted average lease expiry of 4.34 years (by area).
| Issuer: | Axis REIT Sukuk Bhd.
|
| Issue: | Islamic medium-term notes
|
| Amount: | RM 155 million
|
| Settlement date: | Aug. 15
|
|
|
| Tranche 1
|
| Amount: | RM 70 million
|
| Maturity: | 9½ years with an expected maturity of seven years
|
| Financing rate: | 4.18%
|
| Rating: | RAM Rating Services: AAA
|
|
|
| Tranche 2
|
| Amount: | RM 60 million
|
| Maturity: | 7½ years with an expected maturity of five years
|
| Financing rate: | 4.13%
|
| Rating: | RAM Rating Services: AAA
|
|
|
| Tranche 3
|
| Amount: | RM 15 million
|
| Maturity: | 7½ years with an expected maturity of five years
|
| Financing rate: | 4.13%
|
| Rating: | RAM Rating Services: AA1
|
|
|
| Tranche 4
|
| Amount: | RM 5 million
|
| Maturity: | 7½ years with an expected maturity of five years
|
| Financing rate: | 4.13%
|
| Rating: | RAM Rating Services: AA2
|
|
|
| Tranche 5
|
| Amount: | RM 5 million
|
| Maturity: | 7½ years with an expected maturity of five years
|
| Financing rate: | 4.13%
|
| Rating: | RAM Rating Services: AA3
|
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