Unit of CapitaLand Ascott Reit trustee issues S$120 million of 3.7% notes due in 2029

THE managers of CapitaLand Ascott Real Estate Investment Trust (CapitaLand Ascott Reit) and CapitaLand Ascott Business Trust said on Friday (Mar 8) that Ascott Reit MTN – a wholly-owned subsidiary of the trustee of CapitaLand Ascott Reit – has issued S$120 million of 3.69 per cent notes due Mar 15, 2029.

The notes are issued under its S$2 billion multicurrency debt issuance programme established in September 2009 and amended in July 2020.

The payment obligations of Ascott Reit under the notes will be unconditionally and irrevocably guaranteed by DBS Trustee, in its capacity as trustee of CapitaLand Ascott Reit.

The net proceeds arising from the issue of the notes will be used for refinancing the existing borrowings of CapitaLand Ascott Reit and its subsidiaries.

DBS Trustee has entered into a swap transaction to swap part of the Singapore dollar denominated proceeds of the notes into euro, amounting to approximately 78.6 million euros (S$114.4 million) at a fixed interest rate of 3.547 per cent per annum.

CapitaLand Ascott Reit and CapitaLand Ascott Business Trust make up the stapled group CapitaLand Ascott Trust : HMN 0% (Clas).

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Units of Clas closed at S$0.90 on Friday, down 0.6 per cent or S$0.005, before the announcement.