CapitaMall Trust raises $250mn 3-yr convertible bonds

The convertible bonds bear an interest of 2.125% per annum, payable half-yearly.

According to CapitaMall Trust, the convertible bonds are due April 2014 and it have been fully placed to institutional and accredited investors.

Due to strong demand, the base offering size was increased from the $200 million announced at launch to $250 million.

The lead manager for the issue of the convertible bonds may exercise an option within 30 days from 10 March 2011 to further increase the size of the issue by up to S$100 million, to $350 million. Credit Suisse (Singapore) Limited is the sole bookrunner and sole lead manager for the issue.

The bonds are unsecured and convertible into new CMT units at a conversion price of $2.2692 per unit. The bonds bear an interest of 2.125% per annum, payable half-yearly.

Mr Simon Ho, CEO of CMTML, said, “We are encouraged by the strong response to the issue of our convertible bonds. This issue is part of CapitaMall Trust’s proactive capital management efforts, to optimise our debt structure and diversify sources of funding. The interest rate of 2.125% per annum, over three years, is attractive for such unsecured convertible bonds. The proceeds will be used to fund our on-going asset enhancements and to refinance existing borrowings.”