CapitaMall Trust launches retail bond offering, paying 3.08% per year
Public offer period: 9 a.m. 11 February 2014 to 12 noon 18 February 2014
Minimum investment sum of S$2,000
Caters to investors looking for fixed income returns
Singapore, 10 February 2014– CapitaMall Trust Management Limited (“CMTML”), in its capacity as manager of CapitaMall Trust (“CMT”), is pleased to announce the offering for subscription of up to S$200 million in aggregate principal amount of 7-year retail bonds to the public in Singapore, and institutional and other investors under CMT’s S$2.5 billion retail bond programme. The issuer is HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of CMT.
The retail bonds carry a fixed interest of 3.08% per annum, to be paid half-yearly on 20 February and 20 August each year from 2014 to 2021, commencing on 20 August 2014.
Up to S$150 million of the retail bonds will be offered to the public (the “public offer”), while up to S$50 million will be offered to institutional and other investors (the “placement”). In the event the public offer and/or placement is oversubscribed, the manager may increase the total issue size to up to S$350 million and determine the final allocation between the public offer and placement. Subscriptions under the public offer will be subject to balloting if the total subscriptions exceed the amount available. The joint lead managers and bookrunners for this offer are DBS Bank Ltd. (“DBS Bank”), Oversea-Chinese Banking Corporation Limited (“OCBC Bank”) and United Overseas Bank Limited (“UOB”).
The public offer will open for subscription at 9 a.m. on 11 February 2014 and close at 12 noon on 18 February 20142 . Applications can be made via ATMs of DBS Bank (including POSB), OCBC Bank and UOB and its subsidiary, Far Eastern Bank Limited (“participating banks”), the internet banking websites of the participating banks, and the mobile banking interface of DBS Bank. The minimum investment amount is S$2,000 for subscriptions under the public offer, with incremental multiples of S$1,000.
Mr Wilson Tan, CEO of CMTML, said, “Our first series of 2-year retail bonds issued in 2011 under our S$2.5 billion retail bond programme received strong interest from retail investors and was about 1.9 times subscribed. It has since been fully repaid last year. Following the strong reception in 2011, we are pleased to offer our second series of retail bonds, which members of the public in Singapore can subscribe to for a minimum investment sum of S$2,000. With an attractive fixed interest payment of 3.08% per annum, the bonds will cater to investors looking for fixed income returns and provide them with another avenue to participate in the strong and recurring income streams of our malls.”
“CapitaMall Trust was assigned an ‘A2’ issuer rating on 19 March 2013 by Moody’s Investor Service, which is the highest rating given to a Singapore real estate investment trust. Our portfolio comprises 16 income-producing assets, which are predominantly well-located necessity shopping malls whose businesses have proven to be resilient through economic cycles. This bond offering will enable CapitaMall Trust to diversify sources of funding.”
The Offer Information Statement (“OIS”) in relation to the 7-year retail bonds is to be lodged with the Monetary Authority of Singapore (“MAS”) today and will be made available at selected branches of DBS Bank (including POSB), OCBC Bank and UOB Group (subject to availability) and will be made available for download from the MAS’s OPERA website at http://masnet.mas.gov.sg/opera/sdrprosp.nsf. Applications for the public offer must be made in accordance with the terms and conditions set out in the OIS.
Note: Approval in-principle from the Singapore Exchange Securities Trading Limited (“SGX-ST”) has been obtained for the listing and quotation of the 7-year retail bonds on the Main Board of the SGX-ST, subject to certain conditions. Approval in-principle granted by SGX-ST and the listing of and quotation of the retail bonds are not to be taken as an indication of the merits of the retail bonds.