By Susanna Moon
Chicago, Oct. 22 – Perennial Real Estate Holdings Ltd. said underwriters fully exercised the S$150 million over-allotment option on its 4.65% three-year bonds, bringing the total deal size to S$300 million.
The public offering was about 9.8 times oversubscribed, resulting in the reallocation of S$100 million from the public tranche to the placement tranche, according to a company notice.
The offering for up to S$150 million of the bonds to retail investors in Singapore was announced on Oct. 13, with an option to increase the sale to up to S$300 million if it was oversubscribed.
The public offer ran from Oct. 13 to Oct. 21, with applications for about S$488.8 million.
As previously announced, proceeds will be used for general corporate purposes, including refinancing of existing borrowings and financing of working capital, investments including mergers and acquisitions and/or capital expenditure.
DBS Bank Ltd. is the bookrunner.
“Our 4.65% three-year retail bonds has one of the shortest [tenors] amongst the retail bonds issued by corporates in recent years, offering retail investors an attractive fixed-income investment with regular and stable returns,” said Perennial chief executive officer Pua Seck Guan in a previous release.
“The retail bonds also allow retail investors to participate in our company’s quality portfolio, which is underpinned by a robust balance sheet, relatively low net-gearing, and strong and reputable sponsors.”
Perennial is a Singapore-based owner, developer and manager of large scale mixed-use real estate developments in Singapore, China, Malaysia and Ghana.
| Issuer: | Perennial Real Estate Holdings Ltd.
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| Issue: | Retail bonds
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| Amount: | S$300 million (including S$150 million greenshoe exercise)
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| Maturity: | Three years
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| Bookrunner: | DBS Bank Ltd.
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| Coupon: | 4.65%
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| Pricing date: | Oct. 13
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| Settlement date: | Oct. 23
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