SINGAPORE (July 13): ARA Asset Management is issuing S$300 million worth of perpetual securities carrying a coupon of 5.2%.

This is ARA’s first perpetual issuance since its delisting from the Singapore Exchange following its S$1 billion multicurrency debt issuance programme on June 29.

ARA says the offering received overwhelming response from investors as the group saw orders worth more than S$600 million or more than double subscription rate.

The perps will be issued in denominations of S$250,000 and will be first callable at ARA’s option on July 19, 2022.

This will confer the right to receive distribution payments at the rate of 5.2% per annum with a distribution rate reset on July 19, 2024 and every seven years thereafter.

In a media release issued on Thursday, ARA announced that the proceeds from the offering will be used for general corporate purposes, including refinancing existing borrowings, financing investments, general working capital and capital expenditure requirements.

The joint lead managers for the offering comprises three banks — DBS, OCBC and UOB.

The group will apply with SGX for permission to deal in and for a quotation of the securities.

John Lim, Group CEO of ARA, says “This is ARA’s first perpetual issuance since our privatisation and we are glad to offer investors a way to continue to partner us in our future growth through this successful offering. The overwhelming response is testament to the strong confidence that investors have in ARA’s solid credit standing and proven track record.”