Investors eating up CapitaMall Trust's 7-year retail bonds

Hot demand causes S$350m upsized total offer.

CapitaMall Trust’s recent offer of 7-year retail bonds has generated keen interest from retail and institutional investors, reports the company's manager, CapitaMall Trust Management Limited (CMTML).

The initial public offer of S$150 million was approximately 2.8 times subscribed, while the initial placement tranche of S$50 million was approximately 2.4 times subscribed.

To meet the strong demand from both retail and institutional investors, the company increased the size of the bond offer from the initial S$200 million to the maximum issue size of S$350 million.

After consultation with the joint lead managers and bookrunners DBS Bank Ltd., Oversea-Chinese Banking Corporation Limited and United Overseas Bank Limited, S$250 million has been allocated to retail investors while S$100 million has been allocated to the placement tranche.

The public offer was launched at 9 a.m. on 11 February 2014 and closed at 12 noon on 18 February 2014. Meanwhile, strong demand from institutional investors for the placement tranche saw the offer closing on 12 February 2014, just two days after its launch.

CMT’s 7-year retail bonds carry a fixed interest of 3.08% per annum, to be paid half-yearly on 20 February
and 20 August each year. The first interest payment date will be on 20 August 2014 and the last interest payment date will be on 20 February 20211, which is also when the principal amount will be repaid in full upon maturity.

Mr Wilson Tan, CEO of CMTML, said, “We are encouraged by the strong response to our latest retail bond offering, and would like to thank all applicants for their support. We had launched the retail bonds to cater to individuals looking for attractive fixed income instruments which they can subscribe to for a minimum investment sum of S$2,000. To meet the strong demand, the size of the bond offer was increased from the initial S$200 million to the maximum issue size of S$350 million. Investors can look forward to future opportunities to participate in subsequent
bond offerings under our S$2.5 billion retail bond programme.”

The 7-year retail bonds are expected to be issued on 20 February 2014 and will commence trading on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST) at 9 a.m. on 21 February 2014 under the trading name “CapMallTrb3.08%210220”. The retail bonds will be traded in board lot sizes of S$1,000. The SGX-ST stock code for CMT’s 7-year retail bonds is “TY6Z”.