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What Investors Should Know About Frasers Property’s Green Retail Notes, Singapore’s First Corporate Green Retail Notes

Enjoy a higher interest rate than what you would get from the SSB/SGS

Frasers Property Ltd (SGX: TQ5), through its wholly-owned subsidiary Frasers Property Treasury Pte Ltd, has launched its first-ever green retail notes for investors who are looking for green investments with fixed returns.

A little background, Frasers Property is a Singapore-headquartered multinational real estate company that operates across five asset classes: residential, retail, commercial & business parks, industrial & logistics, and hospitality.

Right here, let’s explore what investors should know about Frasers Property’s latest investment offering before they think about investing in it.

What Are Frasers Property’s Green Retail Notes About?

Frasers Property Limited is offering interest-bearing debt securities to finance or refinance new and existing eligible green projects based on a set of criteria in accordance with Frasers Property Treasury’s Green Finance Framework.

The group aims to finance the majority of its sustainable asset portfolios with green and sustainable financing by 2024. Hence, the Green Finance Framework guides it towards achieving this sustainability goal.

Proceeds from Frasers Property’s green financing will fund real estate projects that enable reductions in energy consumption, carbon emission, water consumption, and waste generation.

Frasers Property will be the guarantor for the notes. It unconditionally and irrevocably guarantees all payments of interest due and the full repayment of the principal amount at the maturity date of the notes.

This is the second retail bond offering issued by Frasers Property Treasury and guaranteed by Frasers Property. The first retail bonds successfully matured on 22 May 2022.

Frasers Property’s Green Retail Notes Give Fixed Return Of 4.49% P.A. 

The green notes will provide investors interest at a fixed rate of 4.49% per annum up till its maturity date on 16 September 2027.

Noteholders will receive semi-annual interest payments on 16 March and 16 September each year, with the first payment starting on 16 March 2023.

The green notes are available to both retail and institutional investors.

Of the S$420 million that will be offered, up to S$300 million will be available for retail investors (via a public offer) while up to S$120 million will be offered to institutional and other investors (through a placement exercise).

If there’s an oversubscription in the public offer and/or the placement, the total offer size may be increased to up to S$650 million.

How To Apply For The Frasers Property’s Green Retail Notes

The public offer opened for subscription on 9 September 2022 at 9am, and will close on 14 September 2022 at 12pm.

Those who are interested in the green retail notes can apply via:

  • ATMs of DBS Bank (including POSB), OCBC Bank and UOB;
  • the Internet Banking websites of DBS Bank (including POSB), OCBC Bank and UOB; or
  • the mobile banking interfaces of DBS Bank (including POSB) and UOB.

Example of the application page for OCBC Bank

There’s a minimum investment amount of S$1,000, with additional amounts in integral multiples of S$1,000.

Do note that retail investors should only make one application under the public offer. Applying more than once will invalidate all your applications.

The result of the offer is expected to be announced on 15 September 2022, with the issue date of the green notes expected to be on the next day.

The notes should start trading on the Singapore Exchange on 19 September 2022 at 9am.

All investments come with risks and the green notes are no exception. One main risk is the issuer defaulting on its interest payments or principal repayment to investors.

Those who wish to subscribe for the notes should read the offering circular, the pricing supplement, and the product highlights sheet released by Frasers Property Ltd and understand fully what the investment is all about.

Should You Invest In The SSB For Its 1-Year Interest Rate Or 10-Year Average Return?

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