CapitaLand Trust unveils $600m placement to finance Paragon deal

New units are priced at 2.7% to 4.3% discount.

CapitaLand Integrated Commercial Trust (CICT) is raising at least $600m through a private placement of new units to institutional, accredited and other investors to help fund its planned acquisition of Paragon, a freehold mixed-use asset at 290 Orchard Road, Singapore.

CICT’s manager, CapitaLand Integrated Commercial Trust Management Limited, said in a company statement that the issue price will be set between $2.292 and $2.332 per unit. This represents a 2.7% to 4.3% discount to the last traded volume-weighted average price of $2.3955 on 17 April.

Citigroup Global Markets Singapore, DBS Bank, J.P. Morgan Securities, OCBC, and UOB are acting as joint bookrunners and underwriters with the placement being fully underwritten, subject to regulatory and SGX-ST approval.

About $590.9m, or 98.5% of proceeds, will fund the Paragon acquisition and related costs whilst the remaining $9.1m will go to transaction expenses.

Any surplus may be used for general corporate purposes, including future investments or debt repayment if the deal does not proceed.

The issuance will be carried out under a general mandate expected to be approved at CICT’s annual general meeting (AGM) on 22 April where unitholders will vote on key trust matters, including the authority to issue new units.

The new units will not exceed 3.43% of total units in issue and are within the expected mandate limits with listing on the Singapore Exchange is targeted for 29 April.

An advanced distribution of 3.93 to 4.03 cents per unit will be paid to existing unitholders for income earned before issuance. New units will not be entitled to this distribution but will rank equally thereafter.

Follow the link for more news on

CapitaLand Integrated Commercial Trust

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia