CMT – BT

CMT to raise up to $300m

CAPITAMALL Trust (CMT) is looking to raise up to $300 million through a private placement for asset enhancement works and to meet its capital expenditure needs, the retail trust said yesterday.

The $300 million placement includes an upsize option of about $50 million.

CMT, which is a unit of Singapore’s largest property group CapitaLand, will issue up to 167.6 million new units at $1.79-1.85 per unit.

The net proceeds from the private placement will amount to about $245.7 million (assuming the upsize option is not exercised) and $294.9 million (assuming the upsize option is fully exercised), CMT said.

A large chunk – some 90 per cent to 95 per cent – of the net proceeds from the placement exercise will be used to finance capital expenditure and asset enhancement initiatives, including those at on-going projects such as JCube, The Atrium@Orchard and Iluma.

The remaining 5 per cent to 10 per cent of the proceeds will be used for general corporate and working capital purposes.

The offer of new units under the private placement will be made to institutional and other investors.

The new units are expected to be issued on Nov 10.

CMT shed 1.5 cents to $1.875 yesterday before trading was halted at mid-day.