KUALA LUMPUR (July 31): KIP Real Estate Investment Trust (KIP REIT) has issued its first medium term note (MTN) of RM310 million, which will in part be used to finance the acquisition of Aeon Mall Kinta City Shopping Centre (AMKC) in Perak.

The MTN, which falls under a maiden perpetual MTN programme of up to RM2 billion, was issued by the group’s wholly-owned special purpose vehicle, KIP REIT Capital Sdn Bhd.

In a statement today, KIP REIT said proceeds from the first issuance will also be used to refinance KIP REIT’s existing borrowings.

Out of the total issuance size, RM210 million has been assigned a long-term final rating of AAA/Stable from RAM Ratings, while the remainder issuance size is unrated.

“We are pleased to have KIP REIT’s perpetual MTN Programme established and first issuance completed today. With this, we can look forward to on-tap the said funding platform to fund many of our exciting growth opportunities in the pipeline. Starting with the completion of AEON Mall Kinta City, KIP REIT will pursue our growth appetite to create even greater value to our unit holders in the coming future,” said Datuk Chew Lak Seong, Managing Director of KIP REIT Management Sdn Bhd (the Manager of KIP REIT).

Maybank Investment Bank Bhd is the principal adviser, lead arranger, and lead manager for the MTN Programme.

KIP REIT closed one sen or 1.19% higher to 85 sen today, for a market capitalisation of RM429.51 million.