CapitaLand Commercial Trust withdraws issuance of bonds

The $21.75m of the aggregate bonds have been converted by holders.

CapitaLand Commercial Trust Management Limited, as manager of CapitaLand Commercial Trust (CCT) announced that the $21.75m in aggregate principal amount of the S$175m 2.5% convertible bonds due Sep 12 this year have been converted and cancelled due to an exercise of conversion rights by the holders.

According to OCBC Investment Research, 15.3m new units have been issued at the conversion price of $1.4265 as a result of the conversion.

"To date, the total principal amount of convertible bonds converted and cancelled is $38.75m, with the amount remaining being $136.25m," the brokerage firm said.

At the end of the first quarter of the year, CCT is said to have a strong balance sheet with a healthy gearing of 38.1% and an average cost of debt of 2.6%. OCBC Investment Research said that 80% of CCT's gross borrowings are also on fixed rates, limiting the trust’s exposure to rising interest rates ahead.