Frasers Property, through its wholly-owned subsidiary, Frasers Property Treasury, has priced Singapore’s first corporate green retail notes, which were upsized on the back of strong investor demand.
The final offer size, announced on September 15, was raised from the initial amount of S$420 million (US$297.90 million) to S$500 million after consultation with the joint bookrunners and lead managers of the deal – DBS Bank, OCBC Bank and United Overseas Bank.
The public offer, which closed on September 14, received total valid applications amounting to about S$444.3 million, representing a subscription rate of approximately 1.48 times based on the initial offer size of S$300 million. The placement tranche received total valid applications amounting to about S$245 million, representing a subscription rate of 2.04 times, based on the initial placement size of S$120 million.
Overall, the total valid applications amounting to about S$689.3 million represent a subscription rate of about 1.64 times that of the initial offer, with the final public offer tranche set at S$350 million and the placement tranche at S$150 million.
In terms of geographical distribution, 98% of the placement tranche was sold in Singapore and 2% in other jurisdictions. By type of investors, private banks accounted for 74% of the paper, while fund managers, insurance companies and corporates bought 14% and banks 12%.
The five-year green notes offer an interest rate of 4.49% per annum with semi-annual payments. The net proceeds will be used for financing or refinancing of eligible green projects.
The issuance of green retail notes is in line with Frasers Property’s goal of financing the majority of its new sustainable property assets with green and sustainable financing by 2024. Since its first green loan in September 2018, the group has raised over S$8 billion of green and sustainability loans and bonds.
Frasers Property is committed to achieving key sustainability goals, such as having climate-resilient portfolio adaptation and mitigation plans by 2024 and targeting net-zero carbon by 2050.
This is the second retail bond offering issued by Frasers Property Treasury and guaranteed by Frasers Property. The first retail bonds had matured on May 22 2022, and full payment had been made for all such retail bonds remaining outstanding on the maturity date.
Frasers Property’s multinational businesses operate across five asset classes, namely, residential, retail, commercial and business parks, industrial and logistics, and hospitality. The group has businesses in Southeast Asia, Australia, Europe and China, and its well-established hospitality business owns or operates serviced apartments and hotels in over 20 countries in 70 cities across Asia, Australia, Europe, the Middle East and Africa.