CapitaLand has priced a new $500 million fixed-rate perpetual issue at 3.65 per cent.
Orders have exceeded $900 million, which has allowed the notes to be priced lower than its initial guidance of around 3.85 per cent.
The deal is a perpetual issue non-callable five years, which means the issuer has the right but not the obligation to call or redeem the perps in the fifth year.
If the issue is not redeemed in the fifth year, the interest rate gets reset in the fifth year and every five years after based on the prevailing five-year swap offer rate (SOR) plus the initial spread of 2.2 per cent and (from year 10) the step-up margin of 1 per cent.
The first reset rate means the prevailing five-year SOR plus the initial spread of 2.2 per cent.
The subsequent reset rate means the prevailing five-year SOR plus the initial spread plus the step-up margin of 1 per cent.
The proceeds from the issue will be used for refinancing existing borrowings, financing investRead More – Source