The manager of Ascendas REIT (A-REIT) announced on Aug 12 that HSBC Institutional Trust Services, in its capacity as trustee of the REIT, has established a $7 billion Euro Medium Securities Programme on Aug 11.

Oversea-Chinese Banking Corporation (OCBC) has been appointed as sole arranger and dealer for the programme.

Under the programme, the HSBC Institutional Trust Services may issue notes or perpetual securities denominated in any currency as agreed between itself and the relevant dealer.

The securities will be offered in Singapore according to exemptions invoked under Sections 274, 275, and other applicable provision of the Securities and Futures Act, which applies to offers made to institutional and accredited investors.

The manager says the net proceeds from the issue of each tranche of notes or perpetual securities will be used towards financing or refinancing the acquisitions as well as investments of A-REIT. The funds will also go to on-lending to any trust, fund or entity which the REIT has an interest in, financing the REIT’s general working capital purposes, and refinancing any existing borrowings.

The manager adds that it has applied for permission to the Singapore Exchange Securities Trading Limited (SGX-ST) to deal in, as well as list and quote any securities issued relating to the programme.

Units in Ascendas REIT closed flat at $3.42 on Aug 11.