Keppel DC REIT Management Pte. Ltd., as manager of Keppel DC REIT (the "Manager"), announced that Keppel DC REIT MTN Pte. Ltd. (the "Issuer"), a wholly-owned subsidiary of Perpetual (Asia) Limited (in its capacity as trustee of Keppel DC REIT) (the "Trustee"), has priced SGD 90,000,000 in aggregate principal amount of floating rate notes due 2026 (the "Series 005 Notes").
The Series 005 Notes will be issued under the SGD 2,000,000,000 Multicurrency Debt Issuance Programme established by the Issuer (the "Programme") and will be unconditionally and irrevocably guaranteed by the Trustee. DBS Bank Ltd. has been appointed as the sole dealer and bookrunner for the issue of the Series 005 Notes. The Series 005 Notes will be issued at an issue price of 100% of the principal amount and in denominations of SGD 250,000.
Interest on the Notes will be payable quarterly. The Series 005 Notes will bear interest at a floating rate based on the compounded daily Singapore Overnight Rate Average (SORA) plus an agreed spread. The Series 005 Notes are expected to be issued on 8 December 2023 and are expected to mature on 3 December 2026, unless previously redeemed or purchased and cancelled in accordance with the relevant terms and conditions of the Series 005 Notes.
The net proceeds from the issue of the Series 005 Notes (after deducting issue expenses) will be applied towards (a) financing or refinancing acquisitions and/or investments of Keppel DC REIT and any development or enhancement works initiated by the Trustee or any trust, fund or entity in which the Trustee has an interest, (b) on-lending to any trust, fund or entity in which the Trustee has an interest, (c) financing the general working capital purposes and capital expenditure requirements of Keppel DC REIT and its subsidiaries (the "Group") or (d) refinancing the borrowings of the Group. The Series 005 Notes contain a condition where an event of default may occur if the Manager is removed as manager of Keppel DC REIT pursuant to the terms of the trust deed constituting Keppel DC REIT (the "Keppel DC REIT Trust Deed"), and the replacement or substitute manager is not appointed in accordance with the terms of the Keppel DC REIT Trust Deed. If the condition is breached, it may trigger cross defaults in the other facilities and debt issues of the Group.
In such an event, the aggregate level of facilities and debt issues that may be affected is, as at the date of this announcement, approximately SGD 2,066.0 million (excluding interest and fees). As at the date of this announcement, there has not been a breach of the condition described above.