Sunway-REIT said the transaction marked the first-ever rated perpetual securities issued by a REIT in Malaysia.
PETALING JAYA: Sunreit Perpetual Bond Bhd, a special-purpose vehicle wholly owned by Sunway Real Estate Investment Trust
(Sunway-REIT), has successfully issued its inaugural rated sustainability-linked perpetual securities amounting to RM500mil.
In a statement, Sunway-REIT said the transaction marked the first-ever rated perpetual securities issued by a REIT in Malaysia, as well as the first sustainability-linked perpetual securities in the country.
“The perpetual securities comprise a perpetual non-callable five years tranche of RM150mil, priced at a coupon rate of 4.51%, and a perpetual non-callable seven years tranche of RM350mil, priced at a coupon rate of 4.68%.
“The sustainability-linked perpetual securities are rated A1(s) (which is two notches below Sunway-REIT’s corporate credit rating of AA2) by RAM Rating Services Bhd, while the framework, which the sustainability-linked perpetual securities is based upon, was assigned a ‘gold’ sustainable finance rating by RAM Sustainability Sdn Bhd,” it said.
Sunway-REIT said the securities have been structured to comply with the REIT Guidelines by the Securities Commission, which classify perpetual securities as equity rather than borrowings for the purpose of computation of the asset leverage ratio for REITs.
Sunway-REIT Management Sdn Bhd chief executive officer Clement Chen said he was “extremely pleased” with the outcome of the company’s debut rated sustainability-linked perpetual securities.
“Due to the encouraging demand that we garnered during the book-building process, the deal was upsized to RM500mil from the initial announced size of RM400mil.
“The issue proceeds of the sustainability-linked perpetual securities are expected to be utilised to partly finance acquisition of assets, refinance bank borrowings and for general working capital purposes,” he noted.
