SINGAPORE: CapitaMall Trust Management Ltd (CMTML), the manager of CapitaMall Trust (CMT), announced that the S$250 million convertible bonds due April 2014 had been fully placed to institutional and accredited investors.
STRONG CONTENDER: CMT is also the largest REIT by market capitalisation and asset size in Singapore, with a market capitalisation and asset size of approximately S$6.2 billion and S$8.1 billion respectively.
CMTML is a wholly-owned subsidiary of CapitaMalls Asia Ltd, one of Asia’s largest listed shopping mall developers, owners and managers. Due to strong demand, the base offering size was increased from the S$200 million announced at launch to S$250 million.
According to the press release, the lead manager for the issue of the convertible bonds could exercise an option within 30 days from March 10, 2011, to further increase the size of the issue by up to S$100 million, to S$350 million.
Credit Suisse (Singapore) Ltd is the sole bookrunner and sole lead manager for the issue.
The bonds are unsecured and convertible into new CMT units at a conversion price of S$2.27 per unit. The bonds bear an interest of 2.1 per cent per annum, payable half-yearly.
CMTML chief executive officer Simon Ho said,“We are encouraged by the strong response to the issue of our convertible bonds. This issue is part of CMT’s proactive capital management efforts, to optimise our debt structure and diversify sources of funding.”
“The interest rate of 2.125 per cent per annum, over three years, is attractive for such unsecured convertible bonds. The proceeds will be used to fund our on-going asset enhancements and to refinance existing borrowings,” he added.