UOL Group has become the latest local company to look for financing through the introduction of debt issuance programmes.
The property developer said it has set up a multicurrency medium term note (MTN) programme worth S$1 billion, with United Overseas Bank (UOB) and DBS Bank being appointed as arrangers and dealers.
"The net proceeds arising from the issue of notes under the programme will be used for general corporate purposes, including refinancing of existing borrowings and financing of working capital and capital expenditure requirements of the company and its subsidiaries," said UOL.
Under the programme, the developer can issue notes in Singapore dollars or any other currency on a non-syndicated or syndicated basis.
Each series of notes can be issued in one or more tranches at par, or at a discount or premium, and they may be variable, fixed, hybrid or floating interest rates.
UOL’s recent announcement comes on the back of similar moves made by other bigger companies such as UOB, Neptune Orient Lines (NOL) and DBS over the past month.
NOL set up a US$1.5-billion MTN Programme earlier this week and appointed Standard Chartered Bank, DBS Bank and HSBC as its arrangers.
DBS also established a MTN Programme worth US$10 billion to issue senior debt securities, while UOB established a euro MTN programme in June that would allow it to borrow nearly S$5 billion in different currencies at different maturities.