Hotel Properties Limited (H15) announced the pricing of 150 million Singapore dollars of 4.38% subordinated perpetual securities to be issued under its 2 billion Singapore dollars multicurrency debt issuance programme established on Mar, 03 2017.

The securities carry a 4.38% annual distribution from their expected issue date on Mar, 25 2026 to, but excluding, Mar, 25 2031. Thereafter, the rate will reset every five years to the five-year SORA-OIS plus a 2.597 percentage point initial spread, a 1.00 percentage point step-up margin and, if applicable, a 3.00 percentage point change-of-control margin.

Distributions are payable semi-annually in arrears on Mar, 25 and Sep, 25 each year, starting Sep, 25 2026, and will be cumulative if deferred. The company may redeem all or part of the securities on Mar, 25 2031 or on any subsequent distribution payment date.

Net proceeds will be used to refinance existing borrowings and fund working capital needs. Hotel Properties intends to seek listing and quotation of the securities on the Singapore Exchange.

DBS Bank, The Hongkong and Shanghai Banking Corporation Limited Singapore Branch, Oversea-Chinese Banking Corporation and United Overseas Bank have been appointed joint lead managers for the issuance, which remains subject to customary closing conditions.