By Mary-Katherine Stinson
Lexington, Ky., Oct. 13 – CapitaLand China Trust Management Ltd. announced that CapitaLand China Trust’s wholly owned subsidiary CLCT MTN Pte. Ltd. priced RMB 600 million of 3.8% free trade zone offshore guaranteed bonds due Oct. 17, 2026, according to a notice.
The bonds are expected to be issued on Oct. 17 at par.
There is an optional par call for taxation reasons.
This transaction marks the REIT’s first issuance of yuan-denominated bonds within the China (Shanghai) Pilot Free Trade Zone. As the first of these bonds issued by a Singapore-based issuer, it will enable CapitaLand China to access the debt capital markets in China, Hong Kong, China and Singapore.
“CapitaLand China Trust’s inaugural launch of the bonds underscores our ability to attract a high level of investor confidence and strong banking support, both within and outside of China. Through this initiative, CLCT will broaden and diversify its funding sources for greater financial flexibility, expanding our CNY-denominated facilities from 13% as of June 30 to 18%, achieving overall interest savings as we pay down existing Singapore dollar-denominated offshore debt while optimizing our capital structure to fuel long-term growth,” CapitaLand China Trust Management chief executive officer Tan Tze Wooi said in the press release.
The CEO also noted that enhancing the funding sources with the local currency that corresponds to the REIT’s generated investment revenue mitigates the impact of currency risk and exchange rate fluctuations.
HSBC Institutional Trust Services (Singapore) Ltd., in its capacity as trustee of CapitaLand China, is the guarantor.
CMB International Capital (Singapore) Pte. Ltd., DBS Bank Ltd. and Oversea-Chinese Banking Corp. Ltd. have been appointed as the joint global coordinators, lead managers and bookrunners, and CMB International Capital Ltd. and CMB Wing Lung Bank Ltd. have been appointed as the joint bookrunners.
Proceeds will be used for refinancing the existing borrowings of CapitaLand China Trust and/or to meet its working capital requirements outside of China.
According to the rule of the listing manual of the Singapore Exchange, it will constitute an event of default if the REIT Manager is removed and is not appointed or replaced in accordance with the terms of the trust deed constituting CapitaLand China Trust. In such an event, the total level of facilities, debt and borrowings that may be affected is about S$1.9 billion, including these bonds but excluding interest, as of Oct. 13.
The diversified real estate group is based in Singapore. The parent was formerly known as Ascott Residence Trust Management Ltd.
| Issuer: | CLCT MTN Pte. Ltd.
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| Guarantor: | HSBC Institutional Trust Services (Singapore) Ltd.
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| Amount: | RMB 600 million
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| Issue: | Bonds
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| Maturity: | Oct. 17, 2026
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| Bookrunners: | CMB International Capital (Singapore) Pte. Ltd., DBS Bank Ltd., Oversea-Chinese Banking Corp. Ltd., CMB International Capital Ltd. and CMB Wing Lung Bank Ltd.
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| Coupon: | 3.8%
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| Price: | Par
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| Yield: | 3.8%
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| Call option: | For taxation reasons
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| Pricing date: | Oct. 13
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| Settlement date: | Oct. 17
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