Ascendas Hospitality issues $70m notes due 2022

It will be in aggregate principal amount of 3.325%.

Ascendas Hospitality Real Estate Investment Trust (A-HREIT) unveiled its plan to issue $70 million in notes due in 2020.

The notes will be called Series 002 and will be issued by A-HREIT wholly-owned subsidiary Ascendas Hospitality MTN.

The Series 002 Notes comprise of $69.7 million 3.325% Notes due 2022 to be issued by the Ascendas-Hospitality Business Trust (A-HBT) and S$280,000 3.325% to be issued by the A-HREIT.

"The Series 002 Notes will bear interest at 3.325 per cent. per annum, payable semi-annually in arrear, and have a tenor of six years. The Series 002 Notes are expected to be issued on 23 September 2016," the group said

According to A-HREIT, DBS has been appointed as sole manager and bookrunner of the Series 002 Notes.

The proceeds arising from the issue of the Series 002 A-HBT Notes will be used to refinance existing borrowings of A-HBT and its subsidiaries.

Meanwhile, proceeds from the issue of the Series 002 A-HREIT Notes will be used to finance general working capital and capital expenditure requirements of A-HREIT and its subsidiaries.