Mapletree Pan Asia Commercial Trust prices S$200 million of green notes at 2.45%

[SINGAPORE] Mapletree Pan Asia Commercial Trust (MPACT) has priced S$200 million of senior green notes at 2.45 per cent, with the debt maturing in 2032, the manager of the real estate investment trust (Reit) said in a regulatory filing on Tuesday (Aug 5).

The proceeds will be used to finance or refinance eligible green projects of MPACT and its subsidiaries, added MPACT Management.

Credit rating agency Moody’s Investors Service has assigned a Baa2 rating – the same as the long-term issuer rating of the Reit – to the notes, which will be issued under its S$5 billion euro medium-term securities programme.

DBS Trustee, as the trustee of MPACT, will unconditionally and irrevocably guarantee the payment obligations.

MPACT Management will apply to list the notes on the Singapore Exchange (SGX) for trading, and for the debt security to be recognised under the SGX Sustainable Fixed Income initiative.

The notes have a condition that stipulates that a default may occur if MPACT Management is removed as the Reit manager pursuant to the terms of the trust deed, the replacement or substitute manager is not appointed in accordance with the terms of the deed.

A total of about S$5.9 billion of outstanding notes and borrowings of MPACT may be affected as a result of such a default or change of the Reit manager or sponsor (subject to conditions).

MPACT units closed unchanged at S$1.32 on Tuesday, before this pricing announcement.