CapitaCommercial Trust (CCT), one of Singapore’s biggest office landlords, announced yesterday the establishment of a $1 billion multi-currency medium-term note (MTN) programme.
The programme was established by CCT MTN Pte Ltd - a wholly owned unit of CCT trustee HSBC Institutional Trust Services Singapore.
The MTN programme will allow CCT MTN to issue notes in series or tranches in any currency as may be agreed between the company and DBS Bank, the arranger and the dealer of the MTN programme.
CCT MTN may issue each series or tranche of notes in various amounts and tenors, which may bear fixed, floating or variable rates of interest.
It can also issue hybrid or zero coupon notes.
All sums payable in respect of the notes will be unconditionally and irrevocably guaranteed by the CCT trustee.
The programme has been given a ‘Baa1′ rating by Moody’s Investors Service.
The net proceeds from each notes issue will be onlent by CCT MTN to HSBC. The CCT trustee can use the funds to: refinance existing borrowings; finance or refinance its investments; lend to any trust, fund or entity in which it has an interest; finance or refinance any asset enhancement works initiated by itself or such trust, fund or entity in which it has an interest; and for its general working capital.
CCT said yesterday that it has applied to the Singapore Exchange for permission to deal in, and quotation for, any notes which are agreed at the time of issue to be listed.
CCT last month posted distributable income of $29.6 million for the third quarter ended Sept 30, 2007 - 13.5 per cent higher than its forecast based on a circular dated August last year, and a 52.4 per cent improvement from the same period last year.
CCT’s Singapore properties include 6 Battery Road, Capital Tower, Robinson Point, HSBC Building, StarHub Centre and the Golden Shoe and Market Street car parks, and a 60 per cent stake in the Raffles City complex.
CapitaMall Trust is the joint owner of Raffles City complex.
Source : Business Times - 21 Nov 2007