Ascott REIT prices debut $150m perpetual securities

It has a fixed distribution rate of 5% pa.

Ascott Residence Trust has priced its debut S$150 million perpetual securities with a fixed distribution rate of 5% per annum.

Proceeds from the issuance of the perpetual securities will be used to fund potential acquisitions and for general corporate funding purposes.

Ascott Reit has been assigned a Baa3 corporate family investment grade rating by Moody's Investors Service Limited. The securities will be unrated. 

Given that the securities will be accounted as equity, Ascott Reit’s aggregate leverage is expected to decrease following the issuance of the securities. 

DBS Bank Ltd and J.P. Morgan (S.E.A.) Limited are the joint lead managers and joint bookrunners for the issuance of the perpetual securitie