Singapore’s PSA is looking to tap the international bond markets to raise up to $650m, the privately held port operator has confirmed.
It plans to issue the 10-year notes, which will carry a coupon of 2.25%, by the end of April 2020, it said in a regulatory filing.
It said the net proceeds from the issuance would be used to finance capital and operating expenditures and general corporate purposes, and to refinance borrowings.
DBS Bank and the Singapore Branch of HSBC have been appointed as joint lead managers and bookrunners for the notes.
PSA said it has been assigned a credit rating of Aa1 (stable) by Moody’s and AA (stable) by Standard and Poor’s, and the notes have been assigned a credit rating of Aa1 by Moody’s.
The notes are expected to be issued on or about 30 April 2020 and are expected to be listed on the Singapore Exchange.
The bonds will be issued under PSA’s existing $3.5bn global medium term note programme established in August 2009.
PSA International-backed Saudi Global Ports (SGP) recently announced that it was set to transform Saudi Arabia’s King Abdulaziz Port into a “mega container hub” as part of an SGD 2.6bn investment.
Last year it made two terminal acquisitions in North America, the first was the Halterm Container Terminal in the Port of Halifax followed by Penn Terminals in Pennsylvania.
Singapore-headquartered PSA International has a portfolio that comprises a network of over 50 coastal, rail and inland terminals spread across 19 countries
This is the second major maritime-related Singapore company to look to the bond markets to bolster its balance sheet.
Last week Keppel Corp announced plans to raise up to SGD 250m from a series of five-year notes, also with a coupon of 2.25%.
