CapitaLand deploys S$1b capital to China, Vietnam & Ascott businesses

Property developer CapitaLand has channelled an additional capital of S$1 billion to its wholly owned China, Vietnam and Ascott businesses.

The developer said it intends to sharpen its focus for the next phase of growth.

The funds came from its recent S$1.8 billion rights issue.

Out of the S$1 billion, half will be allocated to CapitaLand China Holdings, while S$299 million will be deployed to its Vietnam operations, with the remaining S$200 million going to The Ascott Group.

The balance of S$800 million from its rights issue will be set aside for further investment opportunities that may arise.

In a statement, CapitaLand said it will have over S$4 billion of long-term core debt comprising convertible bonds and medium-term notes with an average maturity exceeding six years.

The developer added that it expects its corporate treasury cash levels to be reduced from the current S$2.8 billion to between S$1 billion and S$2 billion over the next six to 12 months.

This is partly due to pre-paying debt which matures in the next two to three years and deploying capital to potential investments when they come up.

Source : Channel NewsAsia – 18 Aug 2009

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