CapitaMall Trust issues US$400m fixed rate notes due 2018

Notes fully swapped to s$505.2m at fixed rate of 3.29 per annum.

CapitaMall Trust Management Limited (CMTML), the manager of CapitaMall Trust (CMT), announced that CMT MTN Pte Ltd (CMT MTN), a wholly-owned subsidiary of HSBC Institutional Trust Services (Singapore) Limited (in its capacity as trustee of CMT), has priced an issue of US$400.0 million fixed rate notes with a tenure of six years .

CMT MTN has entered into swap transactions to swap the United States dollar proceeds of US$400.0 million into Singapore dollar proceeds of S$505.2 million at a S$ fixed interest rate of 3.29% per annum. The obligations of CMT MTN under the swap transactions will be unconditionally and irrevocably guaranteed by the CMT trustee.

The Notes will be the second series of notes issued under a US$2.0 billion Euro-Medium Term Note (EMTN) Programme established by CMT MTN on 29 March 2010 as updated on 12 March 2012. This second EMTN issue will mature on or about 21 March 2018.

The proceeds from the issue of the Notes will be used to partially refinance CMT's borrowings under the S$783.0 million commercial mortgage backed securities (CMBS) which will mature on 31 October 2012.

Mr Simon Ho, CEO of CMTML, said, “This deal is a follow up issue from CMT’s previous debut EMTN issue of US$500.0 million in April 2010. We are pleased that this second issue has similarly received very strong response from investors in Asia and Europe. The proceeds from the issue will be used to refinance part of the CMBS maturing in October 2012. In addition, we have the financial flexibility to refinance the remaining S$277.8 million of the CMBS amount with the committed bank facilities that we secured in early March 2012. In line with our stated capital management strategy, this second EMTN issue will help to further extend CMT’s debt maturity profile and diversify our sources of funding.”