Frasers Property : Logistics & Commercial Trust prices first ever sustainability notes in the SGD bond market, raising S$150 million
07/26/2021 | 12:48am EDT
FRASERS LOGISTICS & COMMERCIAL TRUST PRICES FIRST EVER SUSTAINABILITY NOTES IN THE SGD BOND MARKET, RAISING S$150 MILLION
The transaction is FLCT's inaugural notes issuance pursuant to its S$1 billion Multicurrency Debt Issuance Programme
The sustainability notes issuance attracted strong demand from institutional and high net worth investors, bringing in a total of more than S$450 million of orders.
Marks first time ever that a sustainability notes issuance is priced in the SGD bond market. This is issued under FLCT's newly established Sustainable Finance Framework.
SINGAPORE, 15 JULY 2021
Frasers Logistics & Commercial Asset Management Pte. Ltd., the manager of Frasers Logistics & Commercial Trust ("FLCT", and the manager of FLCT, the "REIT Manager"), is pleased to announce that FLCT has priced S$150 million of its maiden sustainability notes to be issued under a newly established Sustainable Finance Framework (the "Framework")1. It is also the first ever sustainability notes to be priced in the SGD bond market, where proceeds raised are deployed towards the financing or refinancing of Eligible Sustainable Projects as described in the Framework.
FLCT's first sustainability notes are also FLCT's inaugural notes to be issued pursuant to its S$1 billion Multicurrency Debt Issuance Programme. With a fixed coupon rate of 2.18 per cent, the 7-year notes will mature in 2028. The deal was underpinned by exceptionally strong demand from institutional investors. The final orderbook was in excess of S$450 million, with orders from across 39 accounts. In terms of investor distribution, 75% of the notes were allocated to fund managers and insurance accounts, 19% to banks and public sector accounts, and 6% to private banking accounts.
Mr. Robert Wallace, Chief Executive Officer of the REIT Manager, said, "Sustainability has been integral to FLCT's business activities since our inception, and we are delighted with this opportunity to match the diversification of our financing needs via the debt capital markets with sustainability notes. We are thankful to investors for their strong support of FLCT's maiden debt issuance, which illustrates confidence in FLCT's financial strength and growth strategy."
On 15 April 2021, S&P Global Ratings ("S&P") had assigned a 'BBB+' long-term issuer credit rating, with stable outlook to FLCT. The rating reflects S&P's views that FLCT's earnings will remain resilient due to good portfolio diversification across asset classes and geographies, FLCT's lease structures will continue to support its high earnings predictability and that FLCT will preserve its solid portfolio and earnings quality, underpinned by management's strong expertise and portfolio management capabilities. The sustainability notes are rated BBB+ by S&P.
FLCT has committed to achieving a net zero carbon status by 2030, in line with Frasers Property Limited's ambition to be net zero carbon as an organisation. FLCT has developed a work plan to realise its commitment through the various focus areas within its sustainability strategy, which provides the overarching strategy that drives FLCT's approach through three focus areas - Acting Progressively, Consuming Responsibly and Focusing on People. FLCT recognises and understands that sustainability is more than just managing risks. Sustainability provides opportunities to enhance its resilience, provide better customer performance and future-proof its business for the long-term.
FLCT2 was named 'Industrial - Global Listed Sector Leader' in 2020 by GRESB (Global Real Estate Sustainability Benchmark) for the third consecutive year.
Frasers Property is one of the first movers in sustainable financing in Singapore and the wider Asia Pacific region. FLCT is committed to developing sustainable financing practices that are in line with international standards and guidelines and intends to actively leverage on financing opportunities to achieve its sustainability goals. FLCT decided to establish the Framework in order to align its 2030 net zero target and support its sustainability initiatives through the funding programme.
DBS Bank Ltd. and OCBC Bank are the joint lead managers and bookrunners for the transaction. OCBC Bank also acted as the sustainable finance advisor in the preparation of the Framework, which was drawn up in line with the relevant international principles and guidelines3. Deloitte was engaged to provide a limited assurance engagement, and has reviewed the Framework as at 7 July 2021, where the overarching criteria and guidelines of the Framework are in accordance with the Principles.
Frasers Logistics & Industrial Trust ("FLT") merged with Frasers Commercial Trust ("FCOT") in April 2020 by way of an acquisition by FLT of all the units in FCOT, and FLT was renamed FLCT. The GRESB Real Estate assessment in 2020 was based on separate assessments for FLT (comprising the industrial portfolio) and Frasers Commercial Trust ("FCOT") (comprising the commercial portfolio) prior to the merger.
Green Bond Principles ("GBP") 2021, Sustainability Bond Guidelines ("SBG") 2021 and Sustainability Linked Bond Principles ("SLBP") 2020 by the International Capital Market Association ("ICMA"); and Green Loan Principles ("GLP") 2021 and Sustainability Linked Loan Principles ("SLLP") 2021 by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association (collectively known as the "Principles").
About Frasers Logistics & Commercial Trust
Frasers Logistics & Commercial Trust ("FLCT") is a Singapore-listed real estate investment trust with a portfolio comprising 103 industrial and commercial properties, worth approximately S$6.8 billion, diversified across five major developed markets - Australia, Germany, Singapore, the United Kingdom and the Netherlands. FLCT was listed on the Mainboard of Singapore Exchange Securities Trading Limited ("SGX-ST") on 20 June 2016 as Frasers Logistics & Industrial Trust and was subsequently renamed Frasers Logistics & Commercial Trust on 29 April 2020 following the completion of a merger with Frasers Commercial Trust.
FLCT's investment strategy is to invest globally in a diversified portfolio of income-producing properties used predominantly for logistics or industrial purposes located globally, or commercial purposes (comprising primarily CBD office space) or business park purposes (comprising primarily non-CBD office space and/or research and development space) located in the Asia-Pacific region or in Europe (including the United Kingdom). FLCT is sponsored by Frasers Property Limited.
FLCT is a constituent of the FTSE EPRA Nareit Global Real Estate Index Series (Global Developed Index), Straits Times Index and Global Property Research (GPR) 250.
For more information about FLCT, visit www.frasersproperty.com/reits/flct
About Frasers Property Limited
Frasers Property Limited ("Frasers Property" and together with its subsidiaries, the "Frasers Property Group" or the "Group"), is a multi-nationaldeveloper-owner-operator of real estate products and services across the property value chain. Listed on the Main Board of the Singapore Exchange Securities Trading Limited ("SGX-ST") and headquartered in Singapore, the Group has total assets of approximately S$39.2 billion as at 31 March 2021.
Frasers Property's multi-national businesses operate across five asset classes, namely, residential, retail, commercial & business parks, industrial & logistics as well as hospitality. The Group has businesses in Southeast Asia, Australia, Europe and China, and its well-established hospitality business owns and/or operates serviced apartments and hotels in over 70 cities and 20 countries across Asia, Australia, Europe, the Middle East and Africa.
Frasers Property is also the sponsor of two real estate investment trusts ("REITs") and one stapled trust listed on the SGX- ST. Frasers Centrepoint Trust and Frasers Logistics & Commercial Trust are focused on retail, and industrial & commercial properties, respectively. Frasers Hospitality Trust (comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust) is a stapled trust focused on hospitality properties. In addition, the Group has two REITs listed on the Stock Exchange of Thailand. Frasers Property (Thailand) Public Company Limited is the sponsor of Frasers Property Thailand Industrial Freehold & Leasehold REIT, which is focused on industrial & logistics properties in Thailand, and Golden Ventures Leasehold Real Estate Investment Trust, which is focused on commercial properties.
The Group is committed to inspiring experiences and creating places for good for its stakeholders. By acting progressively, producing and consuming responsibly, and focusing on people, Frasers Property aspires to raise sustainability ideals across its value chain, and build a more resilient business. It has committed to be a net-zero carbon corporation by 2050. Building on its heritage as well as leveraging its knowledge and capabilities, the Group aims to create lasting shared value for its people, the businesses and communities it serves. Frasers Property believes in the diversity of its people and are invested in promoting a progressive, collaborative and respectful culture.
For more information on Frasers Property, please visit frasersproperty.comor follow us onLinkedIn.
This news release is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation of any offer, to buy or subscribe for any securities of FLCT in Singapore or any other jurisdiction, nor should it or any part of it form the basis of, or be relied on in connection with, any investment decision, contract or commitment whatsoever.
The value of the units in FLCT ("Units") and the income derived from them may fall or rise. The Units are not obligations of, deposits in, or guaranteed by the Manager, Perpetual (Asia) Limited, in its capacity as trustee of FLCT, or Frasers Property (as the sponsor of FLCT).
An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Unitholders have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.
This news release may contain forward-looking statements or financial information that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward- looking statements as a result of a number of risks, uncertainties and assumptions. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future or likely performance of FLCT. The forecast financial performance or financial information of FLCT is not guaranteed. A potential investor is cautioned not to place undue reliance on these forward-looking statements or financial information, which are based on the Manager's current view of future events.
This news release is not, and the information contained herein are not and do not constitute or form part of, and should not be construed as, an offer to purchase, a solicitation of an offer to purchase, an offer to sell or an invitation or solicitation of an offer to sell, issue or subscribe for the Units or any securities mentioned herein in the United States or in any other jurisdiction where such offer, invitation or solicitation would be unlawful. The Units or any securities mentioned herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration except pursuant to an exemption from, or in a transaction not subject to, the registration requirements under the Securities Act. Any public offering of the Units or any securities mentioned herein in the United States would be made by means of a prospectus that would contain detailed information about FLCT, the Manager and its management, as well as financial statements. There is no intention to register the Units or any securities referred to herein in the United States or to make a public offering of the Units or the securities referred to herein in the United States or in any other jurisdiction where such an offering is restricted or prohibited or where such an offering would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
This news release is not to be distributed or circulated outside of Singapore. Any failure to comply with this restriction may constitute a violation of United States securities laws or the laws of any other jurisdiction.
Frasers Property Limited published this content on 26 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2021 04:47:03 UTC.