OUE says the group’s wholly-owned subsidiary, OUE Treasury, has issued its first green notes of $150 million due 2029, according to an Oct 8 release.
The notes were issued under the group’s $3 billion multicurrency debt issuance programme, which was established on Nov 30, 2016.
On Oct 1, the group announced that the notes carry an issue price of 100% of their principal amount and in denominations of $250,000.
The notes are set to bear an interest rate of 4.0% per annum, and interest on the notes will be payable semi-annually in arrear on April 8 and Oct 8 in each year. The notes are expected to mature on Oct 8, 2029.
The Singapore branch of CIMB Bank Berhad, Oversea-Chinese Banking Corporation Limited (OCBC) and the Singapore branch of The Hongkong and Shanghai Banking Corporation Limited, have been appointed joint lead managers, bookrunners of the offering of the notes.
According to the group, the net proceeds from the notes will go towards financing or refinancing new or existing eligible green projects that meet the eligibility criteria in accordance with OUE Limited’s green finance framework.
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With a final orderbook of $225 million at a price guidance of 4.0%, the group adds that the notes were oversubscribed by 1.5 times. The deal has since been allocated to a range of accounts comprising fund managers, banks and private banks, at 46%, 15% and 39% respectively.
Post-issuance, OUE has no refinancing requirements until September 2026.
Currently, OUE is also in the midst of developing Hotel Indigo Changi Airport at Terminal 2, an upscale lifestyle hotel in the Changi Airport and Changi Business Park precinct.
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The group says the hotel is designed to be the first “zero-energy” hotel in Singapore and potentially the first “zero-energy” airport hotel in the world.
Hotel Indigo, which is expected to commence operations in 2028, is set to achieve the BCA Green Mark Platinum Zero Energy Building standard and will be funded in part by the net proceeds of the issuance of the notes.
Brian Riady, deputy CEO and executive director of OUE, says: “We have achieved multiple objectives with this highly successful transaction, including the establishment of the framework that is aligned with the green criteria of the Singapore-Asia taxonomy and the completion of our inaugural green notes issuance.
He adds: “In addition, the framework and green notes form important parts of OUE Real Estate’s environmental, social, governance (ESG) 2030 Vision to include more than 90% of our financing in sustainable-linked formats.
Shares in OUE closed 1 cent lower, or down 0.94%, at $1.06 on Oct 8.
