ESR Group Enters Japanese Bond Markets with two new Bonds

Under its US$2 billion Multicurrency Debt Issuance Programme, ESR Group Limited, APAC's largest real asset manager powered by the New Economy, has launched two series of Japanese Yen denominated fixed rate notes ("the Notes"): (i) JPY20 billion 1.163% fixed rate notes due 2026; and (ii) JPY 10 billion 1.682% fixed rate notes due 2030.

The Notes Issue will generate JPY30 billion in gross proceeds. After deducting fees, commissions, and expenses, the Group intends to use the gross proceeds to refinance existing borrowings, finance potential acquisition and investment opportunities that the Group may pursue in the future, as well as working capital requirements and general corporate purposes.

The Notes are assigned an AA- rating with a stable outlook by the Japan Credit Rating Agency, Ltd. ("JCR")[1], and are expected to be issued on 10 July 2023. This follows the AA- rating the Group received from JCR in March this year.

In their report, JCR highlighted that the rating reflects "the creditworthiness of the Group based on the management integration with the subsidiary operating companies" and "the company's presence in the Asian market, access to influential investors for co-investment and thereby reduced development risk, stable cash flow generation backed by fund management income, and high financial soundness backed by conservative financial discipline".

The Notes attracted strong institutional demand from international City Banks and a Public Fund. SMBC Nikko Capital Markets Limited was mandated as the Sole Global Coordinator, and a Joint Bookrunner with MUFG Securities Asia Limited Singapore Branch.