Keppel Infrastructure Trust To Issue $73m Subordinated Perpetual Securities

Singapore-listed Keppel Infrastructure Trust (KIT) has announced the issuance of S$100 million ($73.12 million), 4.75 per cent subordinated perpetual securities tranche under an S$1-billion ($730 million) multicurrency debt issuance programme.

The latest S$100 million perpetual debt tranche shall be consolidated and form a single series with the S$200 million ($146.25 million) in aggregate principal amount of 4.75 per cent subordinated perpetual securities issued on June 12, 2019.

Overseas-Chinese Banking Corporation (OCBC) Limited has been appointed as the sole lead manager and bookrunner for KIT’s latest perpetual debt issue.

The S$100 million perpetual debt tranche will be issued on June 25, 2019, at 100 per cent face value, plus accrued interest from June 12 to June 24, 2019. In the event of KIT winding up, the S$100 million perpetual debt tranche will rank ahead of the holders of junior obligations of KIT, but junior to the claims of all other present and future creditors of KIT, assuming that there are any leftover proceeds from a winding up event.

The distribution rate shall be 4.75 per cent per annum for a period of ten years from June 12, 2019, to June 11, 2029, and will reset every ten years after the first reset date at a fixed rate equal to the prevailing ten-year Singapore Dollar Swap Offer Rate (Sing Dollar SOR), plus an initial spread of 2.737 per cent, and step-up margin at one per cent.

KIT reserves the right to call back the S$100 million perpetual debt tranche in whole, but not in part, on June 12, 2029, or any distribution payment date, including the accrued distribution arrears. The redemption price will be fixed at 100 per cent of the outstanding face value, plus any accrued interest.

Proceeds of the S$100 million perpetual debt issuance will be used for refinancing borrowings and general working capital purposes.

KIT units were last traded unchanged at S$0.490 per unit at noon Singapore time on June 19.