A-Reit raises S$300 million from collateralised exchangeable

The innovatively structured deal gets a triple-A rating from both Moody's and S&P, allowing the Singapore-listed trust to achieve a coupon of just 1.6%.

Ascendas Real Estate Investment Trust A-Reit last night raised S$300 million $215 million from an innovatively structured exchangeable bond -- referred to as exchangeable collateralised securities -- that it will use to buy back an outstanding issue of commercial mortgage-backed securities CMBS.

The outstanding 165 million roughly equal to S$300 million CMBS doesn't mature for another two years, but by buying it back early -- at a price slightly below par -- A-Reit will extend the average life of...

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