According to Singapore’s Business Times, which said it had seen the term sheet,orders were in excess of S$100 million.
This issuance saw strong demand from institutional investors, which made up 80 per cent of the final allocation. “This also marks the first bond issuance since LMIR Trust obtained an investment-grade rating on Friday and allowed the company to set a new pricing benchmark to reflect its newly minted investment-grade status,” the report quoted Pee Beng Kiong, head, Bond Syndicate, OCBC, as stating. The bank and Standard Chartered are joint lead managers and bookrunners.
The bonds are not rated. The trust itself has a rating of Baa3 with a ‘stable’ rating outlook by Moody’s, which assigned a rating to LMIRT for the first time on Friday.
The fresh debt is meant for refinancing needs and potential acquisitions. LMIRT’s next debt maturity will be in July, when its first tranche of S$200 million medium-term notes matures, said Moody’s in a reporton Friday. The trust said on Friday that it had received a committed letter of offer from banks to provide a term loan facility of up to an aggregate amount of S$260 million.
According to Moody’s, LMIRT minimises risks of rental arrears by collecting a three-month security deposit before the commencement of a lease.
It also takes advance rent payments equivalent to approximately 10-20 per cent of the total rent for the lease once a lease agreement is signed. “We expect the trust will continue to grow its portfolio through acquisitions and its financial profile will weaken, but remain well within its Baa3 rating parameters,” said Moody’s.