CapitalMall Trust 3.08%

[valuebuddies]

OFFER OF UP TO S$200,000,000 7-YEAR RETAIL BONDS BY WAY OF: (A) AN OFFER OF UP TO S$150,000,000 IN PRINCIPAL AMOUNT OF BONDS AT THE ISSUE PRICE OF 100 PER CENT. TO THE PUBLIC IN SINGAPORE THROUGH ELECTRONIC APPLICATIONS; AND (B) AN OFFER OF UP TO S$50,000,000 IN PRINCIPAL AMOUNT OF BONDS AT THE ISSUE PRICE OF 100 PER CENT. TO INSTITUTIONAL AND OTHER INVESTORS, PROVIDED THAT: (I) THE MANAGER RESERVES THE RIGHT TO CANCEL THE OFFER IN THE EVENT THAT LESS THAN S$50,000,000 APPLICATIONS IN AGGREGATE ARE RECEIVED UNDER THE OFFER; (II) THE MANAGER MAY, AT ITS DISCRETION AND IN CONSULTATION WITH THE JOINT LEAD MANAGERS AND BOOKRUNNERS, REALLOCATE THE AGGREGATE PRINCIPAL AMOUNT OF BONDS OFFERED BETWEEN THE PUBLIC OFFER AND THE PLACEMENT; AND (III) IN THE EVENT OF OVERSUBSCRIPTION IN THE PUBLIC OFFER AND/OR THE PLACEMENT, THE MANAGER MAY, AT ITS DISCRETION AND IN CONSULTATION WITH THE JOINT LEAD MANAGERS AND BOOKRUNNERS, (1) INCREASE THE ISSUE SIZE UNDER THE PUBLIC OFFER AND/OR THE PLACEMENT AND (2) DETERMINE THE FINAL ALLOCATION OF SUCH OVERSUBSCRIPTION BETWEEN THE PUBLIC OFFER AND THE PLACEMENT, SUCH THAT THE MAXIMUM ISSUE SIZE UNDER THE PUBLIC OFFER AND THE PLACEMENT SHALL NOT EXCEED IN AGGREGATE S$350,000,000. THE ISSUE PRICE OF THE BONDS IS S$1 PER S$1 IN PRINCIPAL AMOUNT OF THE BONDS (BEING 100 PER CENT. OF THE PRINCIPAL AMOUNT OF THE BONDS).

SOURCE

[opmi]

can buy with CPFIS or not???

[valuebuddies]

Not sure about CPFIS, anyway I don't have enough also . But will probably bid with hard cash via SCB, 3.08% is good enough to fight against inflation and to balance up my portfolio.

[felixleong]

I think this is good
I previously bought CMA 3.8% 10 years

CMT 3% at 7year looks decent, would be better if its 5 years instead (dun wanna hold so long, scared interest rates goes up)

May I know whats the date for public offering? doesn't seem to be shown in the announcement thanks for sharing

[AlphaQuant]

May I know whats the date for public offering? doesn't seem to be shown in the announcement thanks for sharing

11Feb-18Feb

CapitaMall Trust launches retail bond offering,
paying 3.08% per year
 Public offer period: 9 a.m. 11 February 2014 to 12 noon 18 February 2014
 Minimum investment sum of S$2,000
 Caters to investors looking for fixed income returns

[CityFarmer]

I am not in fixed income investment. I doubt it is rational to lock-in 10 year for bond now with 3.08% interest, with the likelihood of interest hike. A more rational move for bond now should be a stagger strategy with shorter bonds, IMO. May be I have missed key points here?

[felixleong]

May I know whats the date for public offering? doesn't seem to be shown in the announcement thanks for sharing

11Feb-18Feb

CapitaMall Trust launches retail bond offering,
paying 3.08% per year
 Public offer period: 9 a.m. 11 February 2014 to 12 noon 18 February 2014
 Minimum investment sum of S$2,000
 Caters to investors looking for fixed income returns

thanks for the info, you are very helpful
Think i will press a bit of this, now fixed deposits only giving me 1%.. really too low. 3% looks decent enough to protect against inflation.

[felixleong]

I am not in fixed income investment. I doubt it is rational to lock-in 10 year for bond now with 3.08% interest, with the likelihood of interest hike. A more rational move for bond now should be a stagger strategy with shorter bonds, IMO. May be I have missed key points here?

I think this one is 7 years at 3.08%
Ya... the real risk would be a raise in interest rates
Would be better if investors could buy 3 or 5 years bonds instead

[AlphaQuant]

I think this one is 7 years at 3.08%
Ya... the real risk would be a raise in interest rates
Would be better if investors could buy 3 or 5 years bonds instead

ya pricing does not look terribly attractive, esp when it is not secured.

Nonetheless think this will sell pretty well given the strongname, low minimum capital outlay required and the strong visibility of the malls.

[felixleong]

News

Minimum investment sum of S$2,000.

CapitaMall Trust Management Limited (CMTML), in its capacity as manager of CapitaMall Trust (CMT), is pleased to announce the offering for subscription of up to S$200 million in aggregate principal amount of 7-year retail bonds to the public in Singapore, and institutional and other investors under CMT’s S$2.5 billion retail bond programme.

The issuer is HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of CMT.

The retail bonds carry a fixed interest of 3.08% per annum, to be paid half-yearly on 20 February and 20 August each year from 2014 to 2021, commencing on 20 August 2014. Up to S$150 million of the retail bonds will be offered to the public, while up to S$50 million will be offered to institutional and other investors. In the event the public offer and/or placement is oversubscribed, the manager may increase the total issue size to up to S$350 million and determine the final allocation between the public offer and placement. Subscriptions under the public offer will be subject to balloting if the total subscriptions exceed the amount available.

The joint lead managers and bookrunners for this offer are DBS Bank Ltd. (DBS Bank), Oversea-Chinese Banking Corporation Limited (OCBC Bank) and United Overseas Bank Limited (UOB).
The public offer will open for subscription at 9 a.m. on 11 February 2014 and close at 12 noon on 18 February 2014.

Applications can be made via ATMs of DBS Bank (including POSB), OCBC Bank and UOB and its subsidiary, Far Eastern Bank Limited, the internet banking websites of the participating banks, and the mobile banking interface of DBS Bank. The minimum investment amount is S$2,000 for subscriptions under the public offer, with incremental multiples of S$1,000.

Mr Wilson Tan, CEO of CMTML, said, “Our first series of 2-year retail bonds issued in 2011 under our S$2.5 billion retail bond programme received strong interest from retail investors and was about 1.9 times subscribed. It has since been fully repaid last year. Following the strong reception in 2011, we are pleased to offer our second series of retail bonds, which members of the public in Singapore can subscribe to for a minimum investment sum of S$2,000. With an attractive fixed interest payment of 3.08% per annum, the bonds will cater to investors looking for fixed income returns and provide them with another avenue to participate in the strong and recurring income streams of our malls.”
“CapitaMall Trust was assigned an ‘A2’ issuer rating on 19 March 2013 by Moody’s Investor Service, which is the highest rating given to a Singapore real estate investment trust. Our portfolio comprises 16 income-producing assets, which are predominantly well-located necessity shopping malls whose businesses have proven to be resilient through economic cycles. This bond offering will enable CapitaMall Trust to diversify sources of funding."