Singapore-listed warehouse operator Global Logistic Properties Ltd hopes to raise about S$500 million ($385 million)via the issue of perpetual capital securities to fund its operations, sources said on Tuesday.
The company started book-building for the Singapore dollar-denominated perpetuals earlier on Tuesday with guidance that the notes will be priced to yield “mid-to-high 5 percent,” IFR said.
The pricing surprised some bankers who had expected a lower yield since GLP counts Singapore sovereign wealth fund GIC as a major shareholder. The guidance sparked keen interest from investors, especially private bankers, said IFR, a unit of Thomson Reuters.
The pricing is expected to be announced on Wednesday after a roadshow in Hong Kong, sources told Reuters and IFR.
The sources declined to be named because the information has not been made public.
Perpetuals are similar to preference shares in that they offer regular dividends that are higher than yields on bonds issued by the firm. But investors in these securities enjoy less protection than bondholders in the event of default.
JPMorgan is the global coordinator for the GLP perpetuals issue and is joint bookrunner and lead manager along with Citigroup, Goldman Sachs and DBS.