CapitaMall Trust raises retail bond offering to $350 million on strong demand

CapitaMall Trust's (CMT's) offer of seven-year retail bonds has generated keen interest from retail and institutional investors.

The initial public offer of $150 million was 2.8 times subscribed, while the initial placement tranche of $50 million was about 2.4 times subscribed.

To meet the strong demand, the size of the bond offer was increased from $200 million to the maximum issue size of $350 million.

Following consultation with the joint lead managers and bookrunners DBS Bank, OCBC Bank and United Overseas Bank, some $250 million of bonds were allocated to retail investors while the remainder went to the placement tranche.

The bonds carry a fixed interest of 3.08 per cent per annum, to be paid half-yearly on Feb 20 and Aug 20 each year.

The first interest payment date will be on Aug 20 and the last interest payment date will be on Feb 20, 2021, which is also when the principal amount will be repaid in full upon maturity.