In February 2011, CapitaMall Trust (CMT) offered 2-year retail bond for subscription (Series 1). This retail bond was traded on the Singapore Stock Exchange. The fixed interest rate was 2.00% per annum payable annually. The bond was 1.9 times subscribed then and it matured on 25 February 2013. Total bond size was S$300 million ($175 m to retail investors and $125 m to placement tranche).
This time round CapitaMall Trust offered for subscription a Series 2 retail bond on 11 Feb 2014. Details of this retail bond series 2 are:
Total bond size: S$200 million ($150 m for public offer and $50 m for placement)
Maximum Upsize amount: S$350 million (in event of oversubscription)
Interest rate: 3.08% per annum payable semi-annually in arrear.
Issue price: S$1 per S$1 in principal amount of bonds
Minimum size on application: S$2,000 for retail investors tranche
CPF Funds and SRS Funds cannot be used for application (SRS can be used only when the bonds are traded on SGX-ST)
Maturity: 7 years matures on 20 February 2021.
Trading of bonds: Main Board of SGX-ST starting 21 February 2014
Closing date of application: 18 February 12.00 pm
Proceeds of this retail bonds is to pay CMT’s indebtedness maturing this year and some borrowings maturing after this year (in whole or in part).
Based on 2011 issue of Series 1 retail bonds, the balloting ratio was 1:1, ie you apply, you get allocated but may be at lower amount. I am not sure this will apply this time round.
Investors be aware of risks in investing retail bonds which is not subject of this post.
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