CapitaMall's 2-year retail bonds increased to $300mn

The 2-year retail bonds were subscribed 1.9 times, said CapitaMall Trust.

To meet the strong demand from both public and institutional investors, the bond offer was increased from $200 million to $300 million. After consultation with the sole bookrunner and lead manager DBS Bank Ltd, $175 million has been allocated to retail investors while $125 million has been allocated to the placement tranche.

The public offer was launched at 9 a.m. on 17 January 2011 and closed at 12 noon on 23 February 2011. The bonds carry a fixed interest of 2.00% per annum, to be paid annually on 25 February 2012 and 25 February 2013.

Mr Simon Ho, CEO of CMTML, said, “We are very encouraged by the strong response to our first retail bond offer and would like to thank all applicants for their interest. With the low minimum investment sum of S$2,000 and attractive fixed interest payment of 2.00% per annum, the bonds cater to investors looking for good quality fixed income instruments. They also provide investors with opportunities to participate in the strong and resilient income streams of our shopping malls. We regret that we are unable to fully satisfy all the demand in our inaugural offer. However, investors can look forward to opportunities to participate in our future offers under the S$2.5 billion retail bond programme that we have set up.”