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SingPost issues $250 mil subordinated fixed rate perpetual securities with 4.35% p.a. coupon

Felicia Tan
Felicia Tan3/31/2022 11:34 AM GMT+08  • 2 min read
SingPost issues $250 mil subordinated fixed rate perpetual securities with 4.35% p.a. coupon
The perpetual securities are expected to be issued on April 6.
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Singapore Post (SingPost) has, through its wholly-owned subsidiary SingPost Group Treasury, priced $250 million worth of subordinated fixed rate perpetual securities on March 30.

The Singapore dollar (SGD)-denominated perpetual securities will be issued under the $1 billion multicurrency debt issuance programme, and guaranteed by SingPost.

The perpetual securities are being offered in Singapore. They will carry a coupon of 4.35% per annum (p.a.) from April 6 to July 5, 2027.

The first reset date will fall on July 6, 2027.

The reset distribution rate will be at a rate equivalent to the five-year SORA-OIS or Singapore Overnight Rate Average Overnight Indexed Swap.

There will also be an initial spread of 2.183% plus the first step-up margin of 0.25% p.a. from July 6, 2027 to July 5, 2047. The second step-up margin of 0.75% p.a. will happen from July 6, 2047 onwards.

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The securities will have no fixed redemption date and will confer a right to receive distribution payments.

Distributions under the perpetual securities shall be payable semi-annually in arrear on Jan 6 and July every year.

The perpetual securities are expected to be issued on April 6.

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DBS Bank, The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch (HSBC) and Oversea-Chinese Banking Corporation Limited (OCBC) were appointed as joint lead managers and bookrunners of the offering of the perpetual securities.

As at 11.35am, shares in SingPost are trading 0.5 cent lower or 0.76% down at 65.5 cents.

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