Sunway REIT is the First REIT in Malaysia to Launch a Perpetual Bond

18 April 2019

We are pleased to announce that Sunway Real Estate Investment Trust (Sunway REIT), through its special-purpose vehicle, SUNREIT Perpetual Bond Berhad (the Issuer) had successfully launched a Perpetual Note Programme of RM10.0 billion with its maiden issuance of RM340.0 million unrated perpetual securities (Perpetual Securities).

The Perpetual Note Programme is the first-of-its-kind by a Malaysian Real Estate Investment Trust (REIT).

Kenanga Investment Bank Berhad played a significant role in this transaction which led to its success.

The Perpetual Securities are hybrid instruments that have characteristics of both debt and equity, where the Issuer pays a coupon on fixed intervals with an indefinite maturity period. It is unsecured, subordinated, and may be rated or unrated by tranches. The Issuer can also exercise its option to redeem the Perpetual Securities upon the relevant call dates or to defer the coupon payments, where such deferment is non-cumulative.

Proceeds from this issuance will be utilised for the financing of investment activities, the refinancing of existing and/or future borrowings, and the working capital requirements of Sunway REIT.

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