Raffles City issues US$645 million bond

The five-year floating rate notes by Silver Oak is expected to mature by 21 June 2011.

According to a statement, the FRN is secured by Raffles City Singapore, a mixed-use landmark property jointly owned by CCT and CMT through a special purpose trust vehicle known as RCS Trust. Silver Oak is a special purpose company incorporated to provide credit facilities to RCS Trust.

The proceeds from the FRN have been swapped into S$800.0 million. In addition, Silver Oak
has drawn down S$164.0 million from a S$200.0 million five-year term loan facility granted by
DBS Bank Ltd, The Hongkong and Shanghai Banking Corporation Limited and Standard
Chartered Bank.

The S$800.0 million proceeds from the FRN, together with the amount of S$164.0 million term loan, are on-lent to RCS Trust to refinance RCS Trust’s existing aggregate debt of S$964.0 million, head of the latter’s expected maturity date on 13 September 2011. The balance S$36.0 million of the term loan is expected to be fully drawn down in September 2011 to finance purposes such as asset enhancement initiatives and working capital.

The interest rates payable by RCS Trust for the S$800.0 million on-lent from the proceeds of the
FRN and the S$200.0 million term loan will be fixed at 3.09 per cent. per annum and 3.025 per
cent. per annum respectively, from 13 September 2011. Given the attractive interest rates of the
S$964.0 million new borrowings, it is expected that RCS Trust will enjoy lower interest expense
going forward compared with its existing borrowings.

The Banks have further granted a five-year committed revolving credit facility of S$300.0 million
available to finance future capital expenditure, asset enhancement initiatives, general corporate
and working capital purposes.

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Ms Lynette Leong, CEO of CapitaCommercial Trust Management Limited, said, “We are
delighted with the strong response from investors for the five-year US$645.0 million Class A
secured floating rate notes, demonstrated by the 1.7 times subscription despite volatile market
conditions. The book-building and pricing were done within less than a day on 15 June 2011
and attracted strong interest from a diversified base of 13 investors.

We had started exploring refinancing options as early as June last year given the significant deal size and anticipated deal complexities. The optimal solution resulted in our successful integration of a two-stage process: early retirement of the existing notes and issuance of the secured floating rate notes and term loan to refinance the former.

This also marks the completion of the early refinancing of CCT’s only outstanding debt for 2011 and extension of its portfolio debt maturity – another representative case of our proactive capital management strategy.”  

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