Mapletree Logistics Trust issues inaugural US$74.5 million dim sum bond

[SINGAPORE] The manager of Mapletree Logistics Trust (MLT) has priced 500 million yuan (US$74.5 million) worth of an offshore renminbi bond in what is its first foray into the dim sum bonds.

Proceeds for the three-year bond, which bears a coupon of 2.1 per cent per annum, will be used for general corporate purposes, including refinancing the existing borrowings of MLT, it said on Tuesday (Sep 8).

Fitch Ratings has assigned the bond a long-term rating of “BBB+”, in line with MLT’s Long-Term Issuer Default Rating. It was issued under MLT’s S$3 billion Euro Medium Term Securities Programme.

“By tapping the offshore Renminbi market amid favourable funding conditions, we have secured competitive financing while diversifying our funding sources and investor base,” said Jean Kam, CEO of MLT manager.

“The issuance enhances our financial flexibility and supports our ongoing efforts to optimise our capital structure and deliver long-term returns to unitholders.”

The issuance drew “strong interest” from a “diverse base” of institutional investors, said the manager. HSBC was the sole lead manager for the issuance.

What are dim sum bonds?

Named after Hong Kong’s iconic small-plate cuisine, dim sum bonds are debt securities denominated in yuan but issued outside of mainland China, predominantly in Hong Kong.

Because they are settled in offshore yuan, these instruments give international firms a way to secure Chinese currency without navigating the mainland’s rigorous financial rules.

This sets them apart from panda bonds, which are yuan-denominated debt issued by foreign entities inside the mainland, and kung fu bonds, which are foreign-currency offshore bonds issued by Chinese firms.

According to CSPI Ratings, foreign issuance of dim sum bonds has seen immense growth recently, hitting record levels in 2025 and jumping 128.6 per cent year on year in the first quarter of 2026.

MLT follows Singapore Airlines, which entered the offshore Chinese yuan debt market for the first time in June with a planned 1.5 billion yuan five-year dim sum bond. The two join a growing number of global issuers seeking to tap lower borrowing costs in China.

The trust on Tuesday also said it has agreed to sell a vacant logistics property in Victoria, Australia for A$28 million (US$20.2 million).

Units of MLT closed 0.9 per cent or S$0.01 lower at S$1.15 on Tuesday, before the announcements.