By Rebecca Melvin
Concord, N.H., Sept. 7 – Keppel Corp. Ltd. priced S$400 million 2.9% subordinated perpetual securities at par, according to a company release on Tuesday.
The distribution rate will reset on Sept. 16, 2026, and then every five years after that. The relevant reset distribution rate means the reference rate plus the initial spread plus a step-up margin. The initial spread is 209.7 basis points and the step-up margin is 100 bps per year.
Distributions will be payable semiannually in arrears but may be deferred by the company, and will be cumulative.
The securities are optionally callable in whole, but not in part, at par plus accrued interest on Sept. 16, 2024 and then on subsequent rate reset dates.
DBS Bank Ltd., Oversea Chinese Banking Corp. and United Overseas Bank Ltd. were joint bookrunners and lead managers for the deal.
Proceeds will be used for general corporate and working capital purposes, including refinancing existing debt. The securities are expected to be issued on Sept. 16 and listed on the Singapore Exchange.
The Singaporean conglomerate specializes in offshore and marine, property, infrastructure and asset management.
| Issuer: | Keppel Corp. Ltd.
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| Issue: | Subordinated perpetual securities
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| Amount: | S$400 million
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| Maturity: | Perpetual
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| Bookrunners: | DBS Bank Ltd., Oversea Chinese Banking Corp. and United Overseas Bank Ltd.
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| Distribution rate: | 2.9%
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| Price: | Par
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| Yield: | 2.9%
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| Initial spread: | 209.7 bps
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| First reset date: | Sept. 16, 2026
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| Step-up margin: | 100 bps
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| Call features: | On Sept. 16, 2024 and then on any distribution payment date after that at par plus distribution payment
|
| Pricing date: | Sept. 7
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| Settlement date: | Sept. 16
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