K-Green Trust proposes to expand investment mandate beyond "green" assets

Plus name change to Keppel Infrastructure Trust.

Keppel Infrastructure Fund Management Pte Ltd (KIFM), in its capacity as Trustee-Manager of K-Green Trust (KGT, or the Trust) will be proposing an expansion of its investment mandate and a change of the Trust’s name to Keppel Infrastructure Trust.

KGT was listed in 2010 with an investment focus on “green” infrastructure assets. This investment focus reflected the business focus of its sponsor, Keppel Integrated Engineering (KIE), at the time of its listing. On 2 May 2013, KIE was reorganised under Keppel Infrastructure (KI). With the reorganisation, KIFM proposes that KI assumes the role of the sponsor to the Trust.

In alignment with the wider business activities of KI, KIFM is proposing expanding KGT’s investment mandate to cover a wider range of infrastructure assets. KI currently has three core business platforms in Gas-to-Power, Waste-to-Energy and X-to-Energy, the latter of which spearheads strategic developments into alternative energy sources, energy conversion and integration of the energy value chain, as well as encapsulates other energy infrastructure businesses such as district heating and cooling.

Mr Thomas Pang, CEO of KIFM, said “By widening the Trust’s investment mandate, we will benefit from a wider range of opportunities so that we can continue to deliver stable and recurring returns to our unitholders.

He added, “We intend to continue pursuing quality infrastructure assets that provide predictable and sustainable cash flows.”

Upon unitholders’ approval of the proposed amendments to the trust deed constituting KGT, K-Green Trust will also change its name to Keppel Infrastructure Trust, to better represent the nature and scope of assets that the Trust may acquire with the expanded investment mandate.

The Trustee-Manager will seek unitholders’ approval for the necessary modifications to KGT’s trust deed at an Extraordinary General Meeting, which will be held on 15 April 2014 immediately after its Annual General Meeting.

More details can be found in the circular to unitholders in relation to the proposed trust deed supplement dated 24 March 2014 and despatched to the unitholders on the same date.