Keppel DC REIT has issued S$90 million (~S$68m) in aggregate floating rates.
Part of a S$2bn (US$1.5bn) Keppel DC REIT MTN-established Multicurrency Debt Issuance Programme, the floating rates will mature in December 2026.
Floating rate notes are fixed-income securities with a variable interest rate. As the reference rate resets, payments received are not fixed and can fluctuate. They are relatively short-term investments that mature within two years. Interest is paid four times annually.
The notes have an issue price of 100 percent and will be in denominations of S$250,000 (US$188m).
This latest issuance is the Series 005 notes, and DBS Bank Ltd is acting as the sole dealer and bookrunner.
Keppel DC REIT will use the notes for the financing or refinancing of its acquisitions or investments. Further details were not provided.
In September 2023, Keppel secured a S$120 million (US$87.7m) sustainability-linked loan (SLL) facility, though few details were provided.
In March 2023, the REIT secured a $73m loan facility, guaranteed by financial services firm Perpetual.
Keppel DC REIT currently owns 23 data centers across Singapore, Malaysia, China, Australia, the UK, the Netherlands, Ireland, Italy, and Germany.
Two of the Chinese data centers were acquired from Guangdong Bluesea Data Development Co. Ltd (Guangdong Data Centre 2 & 3) in June 2022. The facilities, along with a third (Guangdong Data Centre 1) are leased back to Bluesea.
On December 15, Keppel issued a letter of demand for default on rent on the three data centers over a period of four months, for a total value of S$8.5 million (US$6.38m).
Keppel DC REIT got a new CEO in July, Loh Hwee Long.
