Fraser and Neave Limited’s S\$125 Million Note Issuance: Key Details for Investors

Overview of the Announcement

Fraser and Neave, Limited (“F&N”), through its wholly-owned subsidiary F&N Treasury Pte. Ltd., has priced S\$125,000,000 in aggregate principal amount of 2.60% notes due in 2033. This issuance is part of its S\$2,000,000,000 multicurrency debt issuance programme and is unconditionally and irrevocably guaranteed by F&N. The notes are categorized as Series 19 Notes.

Key Features of the Series 19 Notes

• Principal Amount: S\$125,000,000
• Interest Rate: Fixed at 2.60% per annum, payable semi-annually in arrears
• Maturity Date: 20 January 2033
• Denominations: S\$250,000 each
• Dealer: United Overseas Bank Limited
• Expected Issue Date: 20 January 2026
• Guarantee: Unconditional and irrevocable guarantee by Fraser and Neave, Limited
• Listing: Application to list and quote the Series 19 Notes on the Singapore Exchange Securities Trading Limited (SGX-ST)

Use of Proceeds

The net proceeds from the issuance will be directed towards funding the working capital and capital expenditure requirements, as well as refinancing existing indebtedness of F&N and its subsidiaries, joint venture entities, and associated entities.

Implications for Shareholders and Investors

• Financial Strength and Flexibility: The issuance of these notes demonstrates F&N’s proactive capital management and commitment to maintaining liquidity for operational and strategic needs.
• Interest Rate Environment: The fixed coupon of 2.60% per annum could be attractive in the current interest rate environment, potentially reducing F&N’s overall cost of debt.
• Guarantee by Parent Company: The unconditional and irrevocable guarantee by F&N enhances investor confidence and signals robust financial backing.
• Potential Share Price Impact: This announcement may be considered price sensitive as it reflects F&N’s ability to attract funding at competitive rates, which could strengthen its financial position and affect its valuation.
• Strategic Flexibility: The use of proceeds for working capital, capex, and refinancing provides F&N with flexibility to pursue growth opportunities and manage its balance sheet efficiently.
• Market Listing: Listing on SGX-ST provides transparency and liquidity for noteholders, further strengthening F&N’s reputation in the capital markets.

Important Considerations

• Regulatory Approval: Approval in-principle from SGX-ST and listing are not indications of the merits of F&N, its subsidiaries, associated entities, joint ventures, the Programme, or the Series 19 Notes.
• Shareholder Attention: Shareholders should monitor further announcements related to the debt programme, as any changes in the funding strategy or financial position could affect the company’s valuation.

Conclusion

This debt issuance is a significant move by F&N to secure long-term funding at fixed rates, enhance its financial flexibility, and support its growth strategy. Investors and shareholders should consider the implications for F&N’s financial health, cost of capital, and future growth prospects.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making any investment decisions. The information is based on public disclosures as of the date of the announcement and may be subject to change.

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