CapitaMall Trust’s 7-year retail bonds attract strong interest from investors
Public offer of S$150 million 2.8 times subscribed; placement tranche of S$50 million 2.4 times subscribed
Total offer upsized to S$350 million
Bonds expected to commence trading at 9.00 a.m. on 21 February 2014
Singapore, 19 February 2014 – CapitaMall Trust Management Limited (“CMTML”), the manager of CapitaMall Trust (“CMT”), is pleased to announce that CMT’s offer of 7-year retail bonds has generated keen interest from retail and institutional investors. The initial public offer of S$150 million was approximately 2.8 times subscribed, while the initial placement tranche of S$50 million was approximately 2.4 times subscribed.
To meet the strong demand from both retail and institutional investors, the size of the bond offer was increased from the initial S$200 million to the maximum issue size of S$350 million. After consultation with the joint lead managers and bookrunners DBS Bank Ltd., Oversea-Chinese Banking Corporation Limited and United Overseas Bank Limited, S$250 million has been allocated to retail investors while S$100 million has been allocated to the placement tranche.
The public offer was launched at 9 a.m. on 11 February 2014 and closed at 12 noon on 18 February 2014. Meanwhile, strong demand from institutional investors for the placement tranche saw the offer closing on 12 February 2014, just two days after its launch.
CMT’s 7-year retail bonds carry a fixed interest of 3.08% per annum, to be paid half-yearly on 20 February1 and 20 August each year. The first interest payment date will be on 20 August 20141 and the last interest payment date will be on 20 February 20211 , which is also when the principal amount will be repaid in full upon maturity.
Mr Wilson Tan, CEO of CMTML, said, “We are encouraged by the strong response to our latest retail bond offering, and would like to thank all applicants for their support. We had launched the retail bonds to cater to individuals looking for attractive fixed income instruments which they can subscribe to for a minimum investment sum of S$2,000. To meet the strong demand, the size of the bond offer was increased from the initial S$200 million to the maximum issue size of S$350 million. Investors can look forward to future opportunities to participate in subsequent bond offerings under our S$2.5 billion retail bond programme.”
The 7-year retail bonds are expected to be issued on 20 February 2014 and will commence trading on the Main Board of the Singapore Exchange Securities Trading Limited (“SGX-ST”) at 9 a.m. on 21 February 2014 under the trading name “CapMallTrb3.08%210220”. The retail bonds will be traded in board lot sizes of S$1,000. The SGX-ST stock code for CMT’s 7-year retail bonds is “TY6Z”.
Please refer to the below table for the allocation results for the public offer, including the balloting ratio and the principal amount of bonds allocated per applicant.
Application results for the public offer
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Note:Approval in-principle from the 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.