08 Sep 2022
Unless otherwise defined, all capitalised terms shall have the same meanings ascribed to them in the Offering Circular dated 26 August 2022 (the “Offering Circular”) and the Pricing Supplement issued by the Issuer on 8 September 2022 relating to the Notes (the “Pricing Supplement”).
SINGAPORE, 8 SEPTEMBER 2022
Frasers Property Limited (“Frasers Property”, and together with its subsidiaries, the “Frasers Property Group” or the “Group”) today announced that its wholly-owned subsidiary, Frasers Property Treasury Pte. Ltd. (“FPTPL” or the “Issuer”), is offering its inaugural green retail notes (the "Notes”) to both retail and institutional investors seeking green investments with fixed returns. This sustainable financing initiative is in line with the Group’s goal of financing the majority of its new sustainable property assets with green and sustainable financing by 2024.
Strong sustainability focus and a track record in green finance
Mr Loo Choo Leong, Group Chief Financial Officer of Frasers Property, commented, “We hope the introduction of this inaugural corporate green retail notes issuance in Singapore will help further fuel interest from both retail and institutional investors in green finance. Frasers Property Group has been achieving GRESB1 recognition for our portfolio of property assets as well as property development. Proceeds from this issuance will help us to finance our sustainable property assets.”
In the GRESB 2021 rankings, Frasers Property Group was recognised as a global and regional sector leader in five categories2. The achievement reflects the Group’s deep commitment towards achieving key sustainability goals, such as having climate-resilient portfolio adaptation and mitigation plans by 2024 and targeting net-zero carbon by 2050.
The issuance is in line with the Group’s goal of financing the majority of its new sustainable property assets with green and sustainable financing by 2024. Since its first green loan in September 2018, Frasers Property Group has raised over S$8 billion of green and sustainability loans and bonds. Net proceeds from this issuance will go towards financing or refinancing new and existing eligible green projects based on a set of criteria3 in accordance with the Issuer’s Green Finance Framework4.
Fixed returns from the Group’s second retail bond offering
The five-year Notes due 2027 will carry a fixed interest rate of 4.49% per annum, with the Issuer offering and issuing up to S$420 million in aggregate principal amount of Notes (the “Offer”), of which up to S$300 million will be offered to retail investors (the “Public Offer”), while up to S$120 million will be offered to institutional and other investors (the “Placement”). The Notes, which will be issued under FPTPL’s S$5 billion Multicurrency Debt Issuance Programme (the "Programme”), will be unconditionally and irrevocably guaranteed by Frasers Property (the "Guarantor”).
The total offer size may be increased (the "Upsize Option"), in the event of oversubscription in the Public Offer and/or the Placement, up to S$650 million, by the Issuer and Guarantor, in consultation with the Joint Lead Managers and Bookrunners of the Offer and subject to mutual agreement between the Issuer and the Joint Lead Managers and Bookrunners. Subscriptions under the Public Offer will be subject to balloting if the total subscriptions exceed the amount available for subscription under the Public Offer. The final allocation between the Public Offer and Placement shall be determined at the discretion of the Issuer and Guarantor in consultation with the Joint Lead Managers and Bookrunners of the Offer.
Unless previously redeemed or purchased and cancelled, the Notes will be redeemed on 16 September 2027. Noteholders will receive semi-annual interest payments on 16 March and 16 September in each year, commencing on 16 March 20235.
This is the second retail bond offering issued by FPTPL and guaranteed by Frasers Property. The first retail bonds had matured on 22 May 2022, and full payment had been made for all such retail bonds remaining outstanding on the maturity date.
Public Offer details
The Public Offer will open for subscription on 9 September 2022 at 9:00 a.m., and close on 14 September 2022 at 12 noon. Retail applications for the Public Offer may be made through the ATMs of DBS Bank (including POSB), OCBC Bank and UOB (collectively, the “Participating Banks”), the internet banking websites of the Participating Banks, or the mobile banking interfaces of DBS Bank (including POSB) and UOB. The minimum investment amount under the Public Offer is S$1,000, with further amounts in integral multiples of S$1,000.
DBS Bank, OCBC Bank and UOB are the Joint Lead Managers and Bookrunners of the Offer. OCBC Bank is the Green Finance Adviser for the Offer.
The Offering Circular, the Pricing Supplement and the Product Highlights Sheet relating to the Notes are available at the Frasers Property website on and on the website of Singapore Exchange Securities Trading Limited (“SGX-ST”) at sgx.com within the "Company Announcements" section under the "Company Information" tab. A printed copy may be obtained on request, subject to availability, during operating hours of selected branches of Participating Banks. More information including frequently asked questions relating to the Notes can also be found on the Frasers Property website at .
Anyone wishing to subscribe for the Notes should read the Offering Circular, the Pricing Supplement and the Product Highlights Sheet in full and must make an application in the manner set out in the Offering Circular, the Pricing Supplement and the Product Highlights Sheet.
Approval in-principle from the SGX-ST has been obtained for the listing of and quotation for the Notes on the Main Board of the SGX-ST. Approval in-principle granted by the SGX-ST and the listing of and quotation for the Notes are not to be taken as an indication of the merits of the Issuer, Frasers Property, their respective subsidiaries (if any), their respective associates (if any), the Programme or the Notes.
IMPORTANT NOTICE: RISKS ASSOCIATED WITH INVESTING IN NOTES
When you invest in a Note, you are essentially lending money to the Note issuer. One key risk is the issuer defaulting on its interest payments or principal repayment to you. Market, business, legal and regulatory risks may affect the issuer’s ability to pay you the Note’s interest, or to repay the principal amount, for as long as you own the Note. Do note that there is no certainty that Frasers Property Limited, as Guarantor, will always remain solvent and able to fulfil its obligations under the guarantee. Other risks such as interest rate and market liquidity risks may affect the price that you can sell the Note for, or your ability to sell in the market if you choose to sell the Note before maturity. Please read the section “Risk Factors” of the Offering Circular for a description of other key risks. If you have further questions, please seek financial or other professional advice before you invest.
The information in this document is qualified in its entirety by, and should be read in conjunction with, the full text of the Offering Circular, the Pricing Supplement and the product highlights sheet disseminated on SGXNet on 8 September 2022 (the “Product Highlights Sheet”) (which prevail in the event of any ambiguity or discrepancy, or omission in this document). The information in this document, the Offering Circular, the Pricing Supplement and the Product Highlights Sheet should be read as of their respective dates, unless otherwise specified or the context requires otherwise. Prior to making any investment decision, prospective investors in the Notes should consider carefully all of the information in the Offering Circular, including any documents incorporated by reference and the risks and uncertainties described therein. Terms used but not defined herein should have the meanings given to them in the Offering Circular and the Pricing Supplement.
This document is not, and does not purport to be, investment advice. Prospective investors should also consult their own legal, tax, accounting, financial and other professional advisers to assist them in determining the suitability of the Notes for them as an investment. Prospective investors should make an investment only after they have determined that such investment is suitable for their financial investment objectives. Prospective investors should consider carefully whether the Notes are suitable for them in light of their experience, objectives, financial position and other relevant circumstances.
This document is not a prospectus nor does it constitute an invitation or offer to acquire, purchase or subscribe for the Notes. This document may not be forwarded or distributed to any other person and may not be reproduced in any manner whatsoever, and in particular, may not be forwarded to any United States address. Any forwarding, distribution or reproduction of this document in whole or in part is unauthorised. Failure to comply with this may result in a violation of the Securities Act or the applicable laws of other jurisdictions.
This document is for information only and this document does not constitute nor form part of, and should not be construed as, any offer, solicitation or invitation to sell, issue or subscribe for securities in the United States or any other jurisdiction where it is unlawful to do so. The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state of the United States or other jurisdiction and the Notes may not be offered or sold within the United States except pursuant to an exemption from, or a transaction not subject to, the registration requirements of the Securities Act. Neither this document nor any copy or portion of it may be sent or taken, transmitted or distributed, directly or indirectly, into the United States or into any jurisdiction where to do so is unlawful. Any failure to comply with these restrictions may constitute a violation of the United States securities law or the applicable laws of any such other jurisdiction. The Notes will only be offered and sold outside the United States in accordance with Regulation S under the Securities Act.
This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.