Sembcorp unit prices S$300 million fixed rate notes at 3.55%
The offering is close to seven times oversubscribed against the target issuance size
[SINGAPORE] Sembcorp Financial Services (SFS), a wholly owned subsidiary of Sembcorp Industries, announced the issuance of S$300 million Series 002 notes under its S$5 billion euro (S$7.4 billion) medium-term note programme established in July 2023.
The fixed rate guaranteed notes are priced at an interest rate of 3.55 per cent per annum, payable semi-annually on Jul 2 and Jan 2 in each year, the group said on Wednesday (Jun 25).
The notes will be issued on Jul 2, 2025, and will mature on Jan 2, 2046. They are expected to list on the Singapore Exchange on or around one business day after the issue date.
The offering was close to seven times oversubscribed against the target issuance size, with strong demand from a diverse base of high-quality fixed income investors including fund managers, insurance companies, central banks and agencies.
Sembcorp said that proceeds from the issuance will finance the general corporate purposes and working capital requirements of the company and its subsidiaries, after issue expenses are deducted.
The payment obligations of SFS will be unconditionally and irrevocably guaranteed by Sembcorp. DBS, OCBC and UOB are the managers for the issuance.
The counter ended Tuesday unchanged at S$6.85.
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