CapitaMall Trust launches retail bonds paying 3.08% a year

CapitaMall Trust is offering up to $350 million in retail bonds for the public and other investors, the trust's manager said on Monday.

CapitaMall Trust Management said the seven-year bonds carry a fixed interest of 3.08 per cent per year. Payments will be made every six months, on Feb 20 and Aug 20 each year until 2021, with the first payment to be made in August this year.

The trust is initially planning to offer up to $200 million of bonds. Up to $150 million of the bonds will be offered to the public, while the rest will be placed with institutional and other investors.

But if the public offer or placement is oversubscribed, CapitaMall Trust Management may increase the total bond issue to $350 million, it said. If so, the allocation between the public offer and the placement offer will be determined at a later date.

The public offer will open for subscription at 9am on Tuesday, Feb 11 and close at 12 noon on Feb 18.

Members of the public who wish to subscribe for the bonds will have to invest a minimum of $2,000, increasing in multiples of $1,000.

"Our first series of two-year retail bonds issued in 2011 under our $2.5 billion retail bond programme received strong interest from retail investors and was about 1.9 times subscribed," Mr Wilson Tan, chief executive officer of CapitaMall Trust Management, said in a statement. That bond issue has since been fully repaid.

The new issue of 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", he added.

CapitaMall Trust units opened unchanged on Monday at $1.825.