[SINGAPORE] CDL Hospitality Trusts (CDLHT) has priced S$100 million in subordinated perpetual securities at 4 per cent under its S$1.5 billion multicurrency debt issuance programme.
The securities are perpetual with no fixed redemption date. The initial distribution rate is 4 per cent per annum from Feb 20, 2026, up to but excluding Aug 20, 2031, when the rate resets.
The reset distribution rate will be equivalent to the five-year Singapore Overnight Rate Average Overnight Indexed Swap plus the initial spread of 2.183 per cent per annum. Distributions are payable semi-annually in arrears.
On Tuesday (Feb 10), CDLHT said in a bourse filing that the net proceeds from the S$100 million perpetual securities will go towards repaying the issuer’s existing borrowings.
The perpetual securities are priced under a multicurrency debt issuance programme that was announced in November 2025.
Net proceeds from the debt issuance programme will be used to refinance existing borrowings, finance or refinance investments, and for fund asset enhancement works. Funds may also be used for on-lending and general working capital purposes.
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DBS, OCBC and UOB have been appointed as joint lead managers for the issuance of the perpetual securities.
Stapled securities of CDLHT ended Tuesday 1.2 per cent or S$0.01 higher at S$0.865, before the announcement.
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