Capitalmalls Asia's Unit To Issue First Retail Bond

By Tengku Noor Shamsiah Tengku Abdullah SINGAPORE, Jan 3 (Bernama) -- CapitaMalls Asia Ltd, through its wholly-owned unit, CapitaMalls Asia Treasury Ltd (the issuer) has announced a public offer for the first retail bond in 2012, catering to investors looking for fixed income returns and capital protection. The total amount of bonds that may be issued is up to S$200 million, comprising up to S$100 million in aggregate principal amount of callable step-up bonds due 2022 to the public and up to S$100 million in aggregate principal amount of bonds to institutional and other investors. CapitaMalls Asia chief executive officer, Lim Beng Chee, said the company's first series of one-year and three-year retail bonds last year attracted strong interest from retail investors and were over1.8 times subscribed in aggregate. "The one-year bond will be fully repaid with interest later this month. The three-year bond matures in 2014 and their prices have held firm despite the volatility in the global economy and lacklustre stock market performance. "Following the strong demand last year, we are pleased to offer our second series of bonds to the public in Singapore, with the minimum investment sum remaining at a low S$2,000," he told a media briefing here Tuesday. The public offer would enable individuals to partake in the rental income resilience of CapitaMalls Asia’s portfolio of shopping malls, he said. Approval in-principle from the Singapore Exchange Securities Trading Ltd (SGX-ST) has been obtained for the listing of and quotation for the bonds on the Main Board of the SGX-ST. The sole bookrunner and lead manager of the offer is DBS Bank Ltd. The bonds will have a term of ten years from their date of issue and will mature on Jan 12, 2022, and are redeemable yearly in whole or in part at the option of the issuer on and after Jan 12, 2017. Interest payment is 3.8 per cent per annum for year one to five and 4.5 per cent per annum for year six to 10, if the bonds are not redeemed early at the option of the issuer. The public offer will start tomorrow and close on Jan 9, 2012. An application under the public offer is subject to a minimum of S$2,000, with incremental multiples of S$1,000. The net proceeds from the issue of the bonds will be used to finance the investments and general corporate purposes of the issuer and CapitaMalls Asia and its units and associated companies. CapitaMalls Asia Ltd is one of the largest listed shopping mall developers, owners and managers in Asia by total property value of assets and geographic reach. It has interests in and manages a pan-Asian portfolio of 97 shopping malls across 51 cities in the five countries of Singapore, China, Malaysia, Japan and India, with a total property value of approximately S$26.9 billion and a total gross floor area of approximately 88 million sq ft -- BERNAMA