FLCT issues S$150m sustainability notes

The seven-year notes will mature in 2028.

The wholly-owned subsidiary of a trustee of Frasers Logistics & Commercial Trust (FLCT) trustee, FLTC Treasury Pte. Ltd., issued a S$150m maiden sustainability notes that is set to mature by 26 July 2028.

In a release dated 15 July, FLCT said the sustainability notes, issued pursuant to its S$1b multicurrency debt insurance programme, has a fixed coupon rate of 2.18%.

The notes will be issued registered form and in denominations of S$250,000.

It said that sustainability notes are issued under a newly established Sustainable Finance Framework is the first-ever sustainability notes to be priced in the SGD bond market. Proceeds from the notes will go to the financing or refinancing of Eligible Sustainable Projects under the Framework.

“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,” Robert Wallace, CEO of the manager, said.

It said the deal was supported by “exceptionally strong demand from institutional investors.” It added that the final order book was in excess of S$450m with orders from across 39 accounts.

As to the investor distributions, 75% of the notes were allocated to fund managers and insurance accounts, 19% to the banks and public sector accounts and 6% to private banking accounts.

DBS Bank Ltd and OCBC Bank were the joint lead manager and book-runners for the transaction.