Keppel REIT Issues 5-Year Convertible Bond

News about Keppel REIT

Keppel REIT is making a S$200 million bonds offering. The security is a senior, unsecured convertible bond with a 5 year maturity and a conversion price of S$1.4625, about 12% above the current trading price. Priced at 100%, the interest rate is set at 1.90%.

Noteholders have a put option after three years to require early redemption of the bonds. After three years, Keppel Reit also has a call option to force early redemption of the bonds, subject to the common units trading at least 30 per cent over the prevailing conversion price.