Mapletree Logistics Trust Management (MLTM), the manager of Mapletree Logistics Trust (MLT), on December 20 issued nine billion yen (USD115.68 million) 10-year fixed rate notes to a long-term financial investor, a leading life insurance company.
The notes, issued through MLT’s wholly-owned subsidiary Mapletree Treasury Company, are priced at a fixed interest rate of 2.71 percent per annum, or at a spread of 1.7 percent over the current 10-year yen swap rate. Issued under the existing SGD1 billion (USD769.23 billion) multi-currency medium-term note programme, the proceeds will be applied towards the refinancing of MLT’s yen loans.
Post-refinancing, the proportion of MLT’s debt due in 2012 is reduced to about seven percent of the total debt. The note issuance has also improved the maturity profile and diversified MLT’s funding sources.
MLT has recently entered into a five-year bank loan agreement to refinance about 1.4 billion yen of loans, or about two percent of its overall debt, due in 2012. Taken together with this note issuance, MLT’s average debt duration has improved from 3.7 years to 4.5 years, with a more balanced debt maturity profile.
In particular, the proportion of debt due in 2012 has been reduced from 13 percent to seven percent. Given that MLT has sufficient liquidity from its available credit facilities to meet the remaining debt due next year, MLTM believes that MLT’s near refinancing risks has been effectively managed.
“We are pleased to have secured long-term funding at such a competitive rate, especially given the current volatile global capital market environment,” says MLTM CEO Richard Lai in a statement. “As part of proactive capital management strategy, we are constantly evaluating various financing sources to achieve a well-balanced debt maturity profile and the most optimal capital structure.”
Moody’s Investors Service assigned a Baa1 rating to the issue, reflecting MLT’s stable and recurring earnings and cash flow streams derived from its good mix of portfolio, with quality and strategically located logistics properties. The company’s rating outlook is stable as Moody’s expect that MLT will exercise prudence in its expansionary strategy while keeping its credit profile within the targeted parameters and maintaining a well-laddered debt maturity profile.
MLT is the first Asia-focussed logistics Reit (real estate investment trust) in Singapore. As at September 30 2011, it has a diversified portfolio of 98 logistics assets in Singapore, Hong Kong, Japan, China, Malaysia, South Korea and Vietnam with a total book value of more than SDG3.7 billion.
Source from http://www.theasset.com/article/20955.html
Mapletree Logistric always has a good debt maturity control but why its NAV is so low? Any hidden reason to bring down its NAV? To be discussed....
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