Keppel Infrastructure Trust hauls $500.8m in equity fundraising

The proceeds will be used to partially repay a loan facility to fund the acquisition in Ixom.

Keppel Infrastructure Trust (KIT) has raised approximately $500.8m through an equity fundraising, comprising a placement and preferential offering.

This equity deal is said to be Singapore's largest year-to-date, and the new units to be issued under the equity fundraising represent approximately 29.4% of KIT's outstanding units prior to the equity fundraising.

The proceeds will be used to partially repay a loan facility drawn down to fund the acquisition by KIT of a 100% stake in Ixom HoldCo Pty Ltd (Ixom), an industrial and infrastructure business in Australia and New Zealand, and its related expenses.

As part of the equity fundraising, the preferential offering was made to entitled unitholders on a non-renounceable basis of 118 preferential offering units for every 1,000 existing units held by entitled unitholders, at the offering price of $0.441 per unit. The preferential offering closed on 4 April 2019 and was 1.8 times oversubscribed.

Pursuant to the preferential offering, approximately 455.3 million units will be issued.

In addition, Keppel Infrastructure Holdings Pte. Ltd, the substantial unitholder of KIT, has accepted in full its provisional allotments of units under the preferential offering.

Earlier in March 2019, KIT raised gross proceeds of approximately $300m under the placement, by issuing approximately 680.3 million placement units at $0.441 per unit. The size of the equity fundraising also increased from $450m to approximately $500.8m.