Perpetual (Asia), as trustee of Keppel DC REIT, has priced €75 million ($109.9 million) worth of fixed rate notes due 2028.
The notes, which are also guaranteed by the REIT trustee, will be drawn down under Keppel DC REIT’s $2 billion multicurrency debt issuance programme.
The Euro-denominated notes will be issued at an issue price of 100% of the principal amount and in denominations of €100,000 or higher denominations of €1,000.
The notes will carry a coupon of 2.61% per annum. Interest on the notes will be payable semi-annually.
The notes are expected to be issued on May 17 and will mature on May 17, 2028.
The net proceeds of the notes will be applied towards general corporate purposes including refinancing the existing indebtedness of Keppel DC REIT and its subsidiaries.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
The notes carry a condition in which the manager of the REIT will be removed should an event of default occurs.
If the condition is breached, it may trigger cross defaults in the other facilities and debt issues of the group. In such an event, the aggregate level of facilities and debt issues that may be affected is around $2.04 billion as at May 10.
As at the date of this announcement, there has not been a breach of the condition described above, says the REIT manager.
Units in Keppel DC REIT closed at $2 on May 9.
