HWT – UOBKH

Issue statistics:

Offer size: 165.0m units
Public Tranche – 30.0m units
Placement Tranche – 135.0m units
Price: S$0.78
NAV per Unit (post-IPO): S$0.73
Forecast DPU: 4.46 cents (FY08)
5.26 cents (FY09)
Market Cap (post-IPO): S$217.9m
Open: 24 Nov 2007
Close: 28 Nov 2007, 12.00noon
Trading: 3 Dec 2007, 2.00p.m. (on “ready” basis)
Lead Manager: JP Morgan

Overview

Hyflux Water Trust (HWT) is the first pure-play global water business trust to be listed on a securities exchange in Asia that provides investors with an opportunity to invest in water-related infrastructure assets (including, but not limited to, water treatment plants (“WTPs”), wastewater treatment plants (“WWTPs”), water recycling plants (“WRPs”), desalination plants (“DPs”) and water distribution companies) in the People’s Republic of China (“PRC”), India, the Middle East and North Africa region (“MENA”) and other high-growth markets globally.

The Trustee-Manager believes that the overall positive outlook on the global water sector, the strong market fundamentals of the PRC water sector, together with long-term, regular and predictable cash flows from a high quality Initial Portfolio, are several key highlights for investing in HWT.

The Trustee-Manager plans to capitalise on the synergistic business models of HWT and Hyflux Ltd (“Sponsor”), the sponsor of HWT, the continuing commitment of the Sponsor to HWT, and the extensive water-related infrastructure expertise and wide networking contacts of the Trustee- Manager to acquire water-related infrastructure assets from the Sponsor through the right of first offer, right of first refusal and right to match granted by the Sponsor (“ROFOAR”) and from third parties. It also plans to increase the distribution of HWT organically through an improvement in utilisation and from the “inbuilt” capacity expansion potential of the Initial Plants.

Upon completion of the Offering, HWT will acquire the entire issued share capital of Hyflux Utility Ltd (“HUL”) from SinoSpring Utility Ltd. (“SUL”), a subsidiary of the Sponsor. HUL owns the entire issued share capital of 11 special purpose companies (“SPCs”), with each SPC owning one or more water infrastructure assets in the form of a WTP, WWTP and/or a WRP. Immediately upon Listing, HWT will have 13 Plants, comprising three WTPs, eight WWTPs and two WRPs (“Initial Plants” and the business undertakings carried on through such Plants, “Initial Portfolio”).

Seven of the Plants have commenced commercial operations as at the date of HWT’s Prospectus (“Operating Plants”) and six of the Plants are expected to commence commercial operations by the end of FY2008 (“Completing Plants”). Each of the SPCs owning the Plants has entered into a long-term Concession Agreement with the relevant Administrative Authorities of between 20 to 30 years. In addition, Yangkou SPC (which owns a WTP) and Liaoyang SPC (which owns a WWTP with recycled water output) has each entered into a Water Supply Agreement with various users.

Please refer to the Prospectus for risk factors and other details of the IPO.