Capitaland : Priced US$400 Million in 10-Year Notes Bearing 4.076% Coupon
09/16/2012| 07:53pm US/Eastern
By Chun Han Wong
SINGAPORE--CapitaLand Ltd. (C31.SG, CLLDY), Southeast Asia's largest developer by market value, has priced at par a US$400 million issuance of 10-year bonds paying 4.076% a year, in the real-estate group's first foray into U.S. dollar bond markets.
The developer expects to issue the fixed-rate notes Thursday under its five billion Singapore dollar (US$4.1 billion) euro medium-term note program, and plans to use the proceeds to refinance existing debt, pay for new investments and fund general corporate needs, CapitaLand said in a Saturday statement.
CapitaLand said the move to tap U.S. dollar bond markets was aimed at currency diversification and broadening its bond-investor base.
The developer will fully swap the proceeds into Singapore dollars for use, thus providing itself with a fixed Singapore-dollar coupon rate for the 10-year duration of the notes.
DBS Bank, HSBC, J.P. Morgan and Morgan Stanley are handling the deal.
Write to Chun Han Wong at email@example.com