The notes have been assigned a rating of ‘BBB-’ by Fitch Ratings and S&P Global Ratings
STONEWEG European Real Estate Investment Trust (Stoneweg E-Reit) has priced its offering of 500 million euros (S$705 million) of green notes due 2031 under its 1.5 billion euros medium-term note programme.
The notes will bear a coupon rate of 4.25 per cent, while the reoffer yield will be 4.343 per cent, payable annually in arrears, said the Reit’s manager on Wednesday (Jan 22).
Net proceeds from the issuance will be used to redeem outstanding notes due November 2025 for general corporate purposes, and to finance or refinance eligible green assets and projects.
The notes are expected to be issued on Jan 30, and will be listed on the Singapore Exchange on or about the business day after. Stoneweg E-Reit’s manager will also apply for the notes to be admitted for listing on the Luxembourg Stock Exchange, and for trading on the exchange’s Euro MTF Market.
They have been assigned a rating of “BBB-” by Fitch Ratings and S&P Global Ratings.
Chief executive of the manager, Simon Garing, said: “Demand from over 100 major international debt investors reached more than 2.4 billion euros, representing (an) oversubscription of nearly five times.”
He added that the issuance of the notes “substantially improves” the Reit’s financial position, with a much-improved weighted average debt maturity profile of 4.3 years and no further debt expiring for almost the next two years.
“While the new coupon is higher than the rate of the current bond, we now have locked in more than half of Stoneweg E-Reit’s interest rate risk for the next six years.”
Units of Stoneweg E-Reit ended 0.6 per cent or 0.01 euro higher at 1.57 euros on Tuesday.
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