Keppel Land to issue bonds worth S$500m

Keppel Land said on Tuesday it would issue 500 million dollars worth of unsecured convertible bonds.

The Singapore-dollar denominated bonds will pay interest at the rate of 1.875 per cent per annum, payable semi-annually in arrears.

The bonds, which have a term of five years, will be convertible into new ordinary shares at an initial conversion price of 6.72 dollars apiece.

The initial conversion price has been set at a 33 per cent premium over its last closing price on November 8 of 5.05 dollars per share.

Keppel Land said it intends to use the bulk of the net proceeds of about S$493 million to finance potential acquisition opportunities.

It may also use parts of the proceeds for general corporate and working capital purposes.

Goldman Sachs and HSBC have been appointed managers for the issue.

Source : Channel NewsAsia – 9 Nov 2010

Join The Discussion

Compare listings