GLP Successfully Prices First-Ever CGIF-Guaranteed Tokyo Pro-Bond Issue
Singapore, 18 December 2020 – GLP Pte. Ltd. (“GLP” or the “Company”) (rated Baa3/BBB/BBB by Moody’s/S&P/Fitch) successfully priced a 0.55% JPY15.4bn 9-year fixed rate senior unsecured bond in the Tokyo Pro-Bond format, guaranteed by the Credit Guarantee and Investment Facility (“CGIF”).
The landmark bond offering is the inaugural Yen-denominated bond issued under the ASEAN+3 Multi-Currency Bond Issuance Framework (“AMBIF”) as well as the first Yen-denominated bond with a CGIF guarantee, setting the benchmark for future corporates in the region looking to tap the currency in similar formats. The transaction marks GLP’s largest ever JPY deal and its first foray into the Tokyo Pro-Bond market, successfully introducing GLP’s credit to the broader investor group and further diversifying its funding sources.
CGIF, rated AA by S&P, is a trust fund of the Asian Development Bank and functions to provide guarantees on local currency denominated bonds issued by corporations within the ASEAN+3 region. CGIF’s objective is to promote financial stability in the region and aid the development of ASEAN’s bond markets.
Edwin Tey, Global Treasurer of GLP, said: “We are pleased to be the first company to issue a Yen-denominated bond with a CGIF guarantee. With CGIF’s guarantee and an issue rating of AA by S&P, GLP was able to issue a longer tenor bond of nine years and achieve a very compelling pricing level. This bond also enables GLP to further diversify our investor base in Japan.”
Ms Guiying Sun, Chief Executive Officer of CGIF, said: “CGIF is delighted to guarantee its first JPY-denominated bond under the AMBIF which not only strengthened cross-border bond market linkages amongst the ASEAN+3, but also lengthened the bond tenor to match the duration of GLP’s capital expenditures and extend the debt maturity profile of GLP.”
The bond is 100% guaranteed by CGIF and will mature on 24 December 2029. Proceeds from the transaction will be used to refinance existing capital sources that have replaced the revolving capital facilities originally used to fund GLP’s Nagareyama assets.
Mizuho Securities is the sole Active Bookrunner for the transaction.
About GLP
GLP is a leading global investment manager and business builder in logistics, real estate, infrastructure, finance and related technologies. Our combined investing and operating expertise allows us to create value for our customers and investors. We operate across Brazil, China, Europe, India, Japan, the U.S. and Vietnam and have US$97 billion in assets under management in real estate and private equity funds. Learn more at glp.com/global
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This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell the bonds referred to above or any other securities. The bonds have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Law No. 25 of 1948, as amended) (the "FIEA") in reliance upon the exemption from the registration requirements since the offering constitutes the private placement to professional investors only under Article 2, Paragraph 3, Item 2 (b) of the FIEA.
