CMT – BT

CapitaMall Trust offers $200m of retail bonds

Interest payment of 2% per annum for 2-year bonds

CAPITAMALL Trust (CMT) is offering up to $200 million in retail bonds, as part of a $2.5 billion retail bond programme announced yesterday.

The $200 million bond issue will consist of a $50 million public tranche, which will be made available by way of electronic application, and a $150 million placement tranche for institutional and other investors.

Both tranches open for applications at 9am today and will be closed at noon on Feb 23. The public can apply through the ATMs of DBS Bank, POSB, OCBC Bank and UOB Bank and its subsidiary Far Eastern Bank, and through DBS Bank’s Internet banking website.

The minimum investment amount is $2,000 for subscriptions under the public offer, with incremental multiples of $1,000.

The issue price of the 2 per cent bonds, due 2013, will be $1 per $1 in principal amount, ie. 100 per cent of the principal amount of the bonds.

CMT, whose portfolio includes Tampines Mall, Funan DigitaLife Mall, Bugis Junction, Rivervale Mall and Plaza Singapura, estimates the net proceeds of the bond issue at $197.9 million, which it says it will use to partially refinance its existing borrowings, fund its investments, on-lend to any trust, fund or entity in which it has an interest, finance asset-enhancement works and for general corporate and working capital purposes.

CMT said its manager has the right to cancel the offer if it receives less than $50 million in applications. In the event that the offer is oversubscribed, CapitaMall Trust Management (CMTM) has the option of increasing the issue size up to a maximum of $300 million – in which case, there will be $75 million for the public tranche and $225 million for the placement.

The bonds are expected to be listed on the Singapore Exchange (SGX) on or about Feb 28. Each board lot will be made up of $1,000 in principal amount of bonds.

CMT said it received in-principle approval from SGX for the listing and quotation of the bonds on Feb 10.

DBS Bank is the sole bookrunner and lead manager for the offer.

As for its $2.5 billion retail bond programme, CMT said the bonds under the programme will be issued from time to time by HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of CMT. DBS Bank is the arranger and dealer of the programme.

The bonds may be issued in series or tranches in Singapore dollars, US dollars, Australian dollars, Canadian dollars, euros, Hong Kong dollars, Japanese yen or in other currencies agreed between CMTM and the relevant dealer of the bonds. The bonds may be fixed-rate, floating-rate, hybrid or zero coupon bonds.

CMT units closed trading unchanged at $1.83 yesterday.