Suntec Reit raises S$280 million from pricey CB

The issuer’s investment grade rating and blue-chip assets, as well as an outstanding convertible that matures next month, help to boost demand and allow the deal to be upsized in full.
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The Suntec City office towers (AFP)</div>
<div style="text-align: left;"> The Suntec City office towers (AFP)</div>

Suntec Real Estate Investment Trust has raised S$280 million $226 million from a Singapore dollar-denominated convertible bond that attracted a lot of demand despite being aggressively priced. In fact, at the final terms, the fair value was actually below par.

Even so, the deal was upsized in full from a base size of S$250 million and priced slightly inside the investor-friendly end with regard to the coupon and yield, which shows that CB investors grabbed with both hands at the opportunity to buy high quality paper from an investment grade issuer.

With a portfolio of top-quality commercial properties in Singapore, including Suntec City Singapore’s largest integrated commercial...

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