SINGAPORE: HSBC Institutional Trust Services (Singapore) Limited , in its capacity as trustee of CapitaLand Retail China Trust (CRCT), has priced S$100 million fixed rate subordinated perpetual securities.
The Perpetual Securities will be issued under the S$1.0 billion Multicurrency Debt Issuance Programme established by the Issuer.
The Perpetual Securities will have no fixed redemption date and will confer a right to receive distribution payments.
The rate of distribution applicable to the Perpetual Securities shall be (i) for the period from, and including, 27 October 2020 to, but excluding, 27 October 2025 (First Reset Date), 3.375 percent per annum;
and (ii) for the period from, and including, the First Reset Date and each Reset Date falling thereafter to, but excluding, the immediately following Reset Date, the applicable Reset Rate of Distribution.
The Reset Rate of Distribution will be a rate equivalent to the Swap Offer Rate or such other Successor Rate or, if there is no Successor Rate, Alternative Relevant Rate, with respect to the relevant Reset Date plus the initial spread of 2.875 percent.
Distributions under the Perpetual Securities shall be payable semi-annually in arrear on 27 April and 27 October in each year, commencing on 27 April 2021 unless deferred in accordance with the Conditions relating to the Perpetual Securities.
Any distribution unpaid in accordance with the Conditions relating to the Perpetual Securities will be non-cumulative and the Issuer is not under any obligation to pay that or any other distributions that have not been paid in whole or in part.
All of the Perpetual Securities may be redeemed at the option of the Issuer on the First Reset Date and each Distribution Payment Date thereafter and otherwise upon the occurrence of certain redemption events specified in the Conditions relating to the Perpetual Securities and in the Pricing Supplement.
The Perpetual Securities will constitute direct, unconditional, subordinated and unsecured obligations of the Issuer and shall at all times rank pari passu, without any preference or priority among themselves, and pari passu with any Parity Obligations of the Issuer from time to time outstanding.
The rights and claims of the holders of the Perpetual Securities are subordinated in the manner described in the Conditions relating to the Perpetual Securities. The Perpetual Securities are expected to be issued on 27 October 2020, subject to the satisfaction of customary closing conditions.
The net proceeds arising from the issue of the Perpetual Securities will be used to:
(a) refinance the existing borrowings of the Group,
(b) finance or refinance the acquisitions and/or investments of CRCT,
(c) on-lend to any trust, fund or entity in which CRCT has an interest,
(d) finance or refinance any asset enhancement works initiated by CRCT and/or
(e) finance general working capital purposes of the Group.
Application will be made to the SGX-ST for the listing and quotation of the Perpetual Securities on the SGX-ST. Such permission will be granted when the Perpetual Securities have been admitted to the Official List of the SGX-ST.
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