Mapletree Treasury decided against redeeming its SGD 3.95% Perp on its first call date of 12 November 2022, citing the “current macroeconomic conditions and interest rate environment” as reasons for skipping the call. The next call date is on 12 May 2023. The perps will not see a coupon step-up by Mapletree this month as its reset date is only on 12 November 2027 until which its coupons will remain at 3.95%. OCBC in a report said,  “In our view, the non-call is due to cost savings reasons in the current environment rather than an inability to access funding”. Mapletree’s decision follows Singapore-based ESR-Logos REIT’s decision to forgo the call on its S$150mn 4.6% Perps on November 3. The REIT had a coupon reset based on the 5Y SOR plus a spread of 260bp that led to its coupon rising from the prior 4.6% to 6.632%.

Mapltree’s 3.95% Perp was trading stable at 92.22, yielding 21.2% to its next call date in May 2023.

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