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Frasers Logistics & Commercial Trust Prices First Ever Sustainability Notes in the Singapore Bond Market

July 19, 2021 – Frasers Logistics & Commercial Trust (FLCT) announced that it has has priced S$150 million (US$110 million) of its maiden sustainability notes to be issued under a newly established Sustainable Finance Framework.

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 (US$740 million) 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 (US$331 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.

Read more here..

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