Real estate investment manager GLP has self-executed its maiden six-month commercial paper issue amounting to S$100 million (US$74.38 million) on the DBS’s FIX Marketplace, the largest issuance on the digital platform to date. GLP is rated BBB- by Standard & Poor's and BBB by Fitch Ratings.
The issue saw strong reception from a diversified investor base, with some orders carried out on FIX Marketplace. The commercial paper offers investors interest of 1.40% per annum and will be used by GLP for general corporate and working capital purposes.
The issuance forms part of GLP’s newly-established US$1 billion commercial paper programme, for which DBS has been appointed the sole arranger and dealer. The programme is fully digitalized to provide greater convenience to GLP, which is now able to directly engage with investors on FIX Marketplace.
Clifford Lee, DBS Bank global head of fixed income, hopes that the issuance of commercial papers through digital means will increase the supply of high-quality papers and provide investors with a broader array of financial instruments in which to invest.
“The democratization of capital markets enabled by technology will become increasingly relevant in today’s digital era, and we envision digital ways of debt issuance to drive the continued growth and development of Asia’s commercial paper market,” Lee adds.
Since the launch of FIX Marketplace in June 2021, close to S$7 billion of issuances denominated in US dollar, Singapore dollar and Hong Kong dollar have been executed on the platform to date.