CMT – BT

CMT’s first retail bonds 1.9 times subscribed

CAPITAMALL Trust (CMT) announced yesterday that its two-year retail bonds were 1.9 times subscribed. In particular, the bonds under the public offer were four times subscribed, receiving valid applications of $206.47 million when the offer closed at noon on Feb 23.

In response, CMT increased the bond offer from $200 million to $300 million. An amount of $175 million has been allocated to retail investors, while $125 million has been allocated to the placement tranche, it added.

CMT had initially allocated $50 million of the bond offer to retail investors and $150 to the placement tranche.

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.

‘We are very encouraged by the strong response to our first retail bond offer,’ said Simon Ho, chief executive of CapitaMall Trust Management, which manages CMT.

Expressing regret that they were unable to fully satisfy all the demand in its inaugural offer, he added: ‘Investors can look forward to opportunities to participate in our future offers under the $2.5 billion retail bond programme that we have set up.’

The bonds – which have received a final credit rating of A3 from Moody’s – will begin trading on the Singapore Exchange at 9am on Feb 28 in board lot sizes of $1,000.

The bond issue is not expected to have a material effect on the net asset value and earnings per unit of the CMT group for the current financial year, it said.

CMT units closed trading one cent higher at $1.78 yesterday.