Investors snap up Chip Eng Seng's $150 million notes

SINGAPORE - Property group Chip Eng Seng Corporation has priced its $150 million worth of fixed rate notes due in 2017 under its $500 million multicurrency debt issuance programme.

The final order books were in excess of $600 million, which allows the group to take advantage of the strong demand to price the new issue at 4.25 per cent, 25 basis points inside of the initial price guidance.

The issue drew strong demand from Singapore-based investors comprising private banks, fund managers, banks and corporate bodies,

The notes will be issued in the denomination of $250,000 and will have a tenor of three years from their date of issue, tentatively set for Oct 17.

The net proceeds raised will be used for general corporate purposes, including the financing of investments and general working capital expenses arising from the group?fs activities.

"As the property market continues to soften due to global economic uncertainty, pockets of opportunity may emerge within the property and construction arenas," said executive chairman Lim Tiam Seng.

" In order to scale up our business at such opportune times, we would require a ready amount of funds in hand."

For the six months ended June 30, the group reported a net profit of $40.2 million on revenue of $321.4 million.