Company Briefs: SunMoon Food Company

SunMoon Food Company

SunMoon Food Company said late on Wednesday that it had on Tuesday entered into a three-month $1 million term loan with an interest of 8.5 per cent per annum with Singapore-based start-up DiMuto for the purchase of fresh fruits and other derived produce and packaged products.

DiMuto, established this year, is owned by First Alverstone Partners, which in turn is equally owned by SunMoon deputy chairman and chief executive Gary Loh Hock Chuan and his wife Selena Cheng. Therefore, the loan facility is considered an interested person transaction under Chapter 9 of the Singapore Exchange's listing manual.

SunMoon and DiMuto had previously entered into a subscription agreement on Aug 12, which grants the former a non-exclusive licence for the usage of the DiMuto blockchain platform for business operations.

Ascendas Reit

Moody's Investors Service is maintaining its A3 rating and positive outlook for Ascendas Real Estate Investment Trust (A-Reit) following the Reit's announcement on Sept 7 that it had raised $452.1 million of equity in a private placement of new units.

In a note yesterday, Moody's noted that the transaction is credit positive as the equity proceeds "will be used to pre-fund planned capital investments, thereby alleviating the need to rely on fresh borrowings" and that Ascendas Reit also indicated it may use part of the proceeds to reduce debt.

The new units, constituting around 5.7 per cent of the Reit's pre-transaction issued share capital, were placed at $2.54 per unit, a 3.5 per cent discount to the Reit's adjusted volume-weighted average unit price on Sept 6 this year.

The ratings agency said it expected the Reit's pro forma leverage, measured by adjusted net debt or Ebitda (earnings before interest, taxes, depreciation and amortisation) to improve and stabilise at 6.1 to 6.2 times over the next 12 to 18 months, compared to its original projections of 6.4 to 6.5 times.

The Reit's adjusted debt or deposited assets are also expected to improve to around 36.5 per cent in the same period, compared to Moody's earlier forecast of 39 per cent.

These projections assume that Ascendas Reit will put the net equity proceeds of $448 million towards acquisitions and other capital investments.

A version of this article appeared in the print edition of The Straits Times on September 14, 2018, with the headline 'Company Briefs'. Print Edition | Subscribe