The Board of Directors of Hektar Asset Management Sdn. Bhd. being the management company (“REIT Manager”) of Hektar Real Estate Investment Trust (“Hektar REIT”), is pleased to announce the successful issuance of RM215.0 million Guaranteed Medium Term Notes (“GUARANTEED MTN”) by Hektar MTN Satu Sdn Bhd (“Hektar MTN Satu”) with a tenure of five (5) years.  

Hektar MTN Satu is a special purpose entity incorporated to raise financing on behalf of Hektar REIT. It is wholly owned by MTrustee Berhad, the REIT Trustee of Hektar REIT.

The issuance of the Guaranteed MTN is the first issuance pursuant to a MTN Programme of up to RM500.0 million in nominal value (“MTN Programme”) established by Hektar MTN Satu. The MTN Programme has a tenure of 10 years comprising issuance of guaranteed tranche(s) of up to RM230 million (“Guaranteed Tranche(s)”) and issuance of rated and/or unrated, guaranteed and/or non-guaranteed tranches (“Other Tranches”). The Guaranteed Tranche(s) benefits from unconditional and irrevocable guarantee by Credit Guarantee & Investment Facility (“CGIF”), a trust fund of the Asian Development Bank.

Proceeds from the Guaranteed MTN will be utilised by Hektar REIT to refinance existing borrowings of Hektar REIT and fund capital expenditure as well as asset enhancement initiatives of Subang Parade.

The Guaranteed MTN has been assigned a AAA(fg) rating by RAM Rating Services Sdn Bhd.  Affin Hwang Investment Bank Berhad is the Principal Adviser, Lead Arranger and Lead Manager for the MTN Programme.

This announcement is dated 15 February 2024.