CapitaLand to raise capital by tapping into US-dollar bond market

Property group CapitaLand is raising capital by tapping into the US dollar bond market for the first time.

The company said its subsidiary CapitaLand Treasury has successfully priced US$400 million fixed rate notes due 2022 at a coupon of 4.076 per cent on Friday.

The fixed notes are part of the S$5 billion Euro Medium Term Note Programme (EMTN Programme) established on August 3.

CapitaLand said in a statement that tapping the US dollar bond market not only provides currency diversification, but also broadens its bond investor base at the same time.

It added that there were over 200 institutional investors participating in the deal, the majority of which are based outside Singapore, primarily in Hong Kong and Europe.

Mr Liew Mun Leong, president and CEO of CapitaLand Group, said in the statement: “We always look to diversify our sources of funding, ranging from equity, bank loans to debt capital markets. It is important to have a broad investor base, in order not to be overly reliant on any single source.”

The net proceeds from the bond issue will be used for refinancing CapitaLand’s existing borrowings, financing of investments and for general corporate purposes.

The closing date for the issue of the notes is expected to be on September 20.

Source : Channel NewsAsia – 14 Sep 2012

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