Singtel Group Treasury (SGT), a wholly-owned subsidiary of Singapore Telecommunications (Singtel), has priced $1 billion of subordinated perpetual securities on April 7.

The order book for the securities, which are guaranteed by Singtel, closed after receiving interest of approximately $2.1 billion and was 2.1 times oversubscribed by investors.
The securities will be drawn down under SGT’s existing $10 billion Euro Medium Term Note Programme and will have an initial rate of distribution of 3.30 per cent per annum.

DBS Bank, The Hongkong and Shanghai Banking Corporation, Oversea-Chinese Banking Corporation and Standard Chartered Bank (Singapore) acted as joint lead managers and book runners.

Singtel states that the net proceeds from this issue will be applied by SGT to fund its ordinary course of business.

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The first distribution rate reset will fall on Oct 14, 2031 with subsequent resets occurring every 10 years thereafter. The distribution rate will be subject to a step-up of 25 basis points per annum Oct 14, 2031 and an additional step-up of 75 basis points per annum on Oct 14, 2051. 

The distributions will be payable semi-annually in arrear on a discretionary basis in accordance with the terms and conditions of the securities.

Arthur Lang, Singtel group CFO, says the group is pleased with the strong demand from the investor community and their continued confidence in Singtel.

“The issuance is aligned with our capital management strategy of achieving the optimal capital structure for the Group. We thank investors for their strong support,” he says.

Shares in Singtel closed down 2 cents or 0.81% lower at $2.46 on April 7.