Wee Hur prices S$175 million fixed rate notes due 2030 at 4.8%

[SINGAPORE] Property developer Wee Hur on Tuesday (Oct 28) launched and priced its inaugural offering of S$175 million worth of fixed rate notes due in 2030 at 4.8 per cent.

Pursuant to Wee Hur’s S$500 million multicurrency medium term note programme established on May 29, the notes are expected to be issued on Nov 4 and to list on the Singapore Exchange on Nov 5.

They will be issued at an issue price of 100 per cent of their principal amount, in denominations of S$250,000 or multiples of this sum. The notes will bear interest at a fixed rate of 4.8 per cent per annum, payable semi-annually in arrears on May 4 and Nov 4 each year, starting from 2026.

The notes will mature on Nov 4, 2030, unless they have been redeemed or purchased earlier and cancelled.

Net proceeds from the issuance will be used for the group’s general corporate purposes. This includes refinancing its existing borrowings and financing investments, acquisitions, general working capital and capital expenditure.

The notes are offered outside of the US and in Singapore, to institutional investors and accredited investors.

Some 15.3 per cent of the notes have been allocated to controlling shareholders and directors of Wee Hur, its chief executive, and associates of these individuals, the group said.

As this is a “substantial portion of the aggregate principle amount” of the notes, these noteholders may be able to control the outcome of votes, which will be binding to all noteholders, the group said. It added that this may also reduce liquidity of the notes in the secondary trading market.

DBS and UOB have been appointed as joint lead managers and bookrunners for the issuance. The Singapore branch of Shanghai Pudong Development Bank has been appointed as a co-manager for the notes.

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The counter closed Tuesday 2 per cent or S$0.015 lower at S$0.745, before the news.