Singapore eDevelopment to issue $300m perpetual bonds

It has 8% interest rate.

Catalist-listed Singapore eDevelopment Ltd. today proposed to issue listed and secured Perpetual Bonds of up to S$300 million with an 8% annual coupon and a share of annual profits of property development projects to be funded.

The company also offered a 100-to-one consolidation of its share to accelerate its strategy for corporate recovery.

SeD intends to issue the Perpetual Bonds in denominations of $100 each, which will entitle the bond holder to receive annual distribution of 8% that is payable twice a year in arrears.

Bond holders will also be conferred the right to receive a pro-rated 30% of net profits after tax generated from the deployment of the bonds into property development projects in U.S., Australia, China and Singapore.

The Perpetual Bonds will be secured with the property development projects funded by proceeds raised from the issuance of these bonds.