Martin Lee @ Sg
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CapitaMalls Asia Bonds 2012

CapitaMalls Asia, through its wholly-owned subsidiary CapitaMalls Asia Treasury, will be raising $200 million through a bond issue. Half of the CMA bond issue will be for public application while the other half will be for private placement.

The CapitaMalls Asia bonds will have a term of ten years from their date of issue and will mature on 12 January 2022. The bonds will be fully tradeable in the secondary market on the SGX.

For the first 5 years (starting from 12 January 2012), the Bonds will bear interest at the rate of 3.8% per annum. Interest will be payable semi-annually in arrear.

For the next 5 years (starting from 12 January 2017), in the event that the Bonds are not redeemed or purchased and cancelled, the Bonds will bear interest at the rate of 4.5% per annum.

The bonds are callable yearly at par by the issuer, in whole or in part, on 12 January 2017, 12 January 2018, 12 January 2019, 12 January 2020 and 12 January 2021, or if such date falls on a day which is not a Singapore business day, the immediately following Singapore business day.

The CapitaMalls Asia bonds will be available using cash only (No CPF or SRS). In the event of oversubscription, the issuer shall have the right to issue up to an additional S$200 million of bonds.

The full offer information statement can be found here:

Capitamalls Asia Bond OIS

Just for comparison, recent public bond issues in the past two years include:

  • SIA 5-year giving 2.15% p.a.
  • CapitaMalls Asia 1-year and 3-year bonds giving 1% and 2.15% p.a. respectively
  • CapitaMalls Trust 2-year giving 2% p.a.
  • F&N 5-year and 7-year giving 2.48% and 3.15% p.a. respectively

Key dates

Opening date and time for applications for the Bonds under the Placement : 3 January 2012 at 2.00 p.m.

Opening date and time for applications for the Bonds under the Public Offer : 4 January 2012 at 9.00 a.m.

Last date and time for applications for the Bonds under the Placement and Public Offer: 9 January 2012 at 2.00 p.m.

Last date and time for applications for the Bonds under the Public Offer: 9 January 2012 at 2.00 p.m.

Commence returning or refunding of application moneys to unsuccessful or partially successful applicants: 11 January 2012

Expected date of issue of the Bonds: 12 January 2012

Expected date of commencement of trading of the Bonds on the Main Board of the SGX-ST: 13 January 2012

Application Process

The issue price for the Bonds is S$1 per S$1 in principal amount of the Bonds (being 100 per cent. of the principal amount of the Bonds). Bonds applied for under the public offer are payable in full upon application. You will need your own CDP account to apply for the public offer.

Under the public offer, the minimum subscription is S$2,000 in principal amount of Bonds or higher amounts in integral multiples of S$1,000 thereof.

Investors can apply for the Bonds under the Public Offer at any ATM of DBS Bank Ltd. (including POSB), Oversea-Chinese Banking Corporation Limited and United Overseas Bank Limited and its subsidiary, Far Eastern Bank Limited, and the internet banking websites of DBS Bank Ltd. and United Overseas Bank Limited.

Under the Placement, the minimum subscription is S$50,000 in principal amount of Bonds or higher amounts in integral multiples of S$1,000 thereof. Applications for the Bonds under the Placement may only be made directly through DBS Bank Ltd., who will determine, at its discretion, the manner and method for applications under the Placement.

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11 comments
Jazz says 7 years ago

May I know how do we receive our money back at the end of the 10 yrs? In our bank accounts linked to the CDP or do we have to sell the bonds? Is there anything to sell if we hold it till maturity date?

Reply
    Martin Lee says 7 years ago

    Hi Jazz,

    There is nothing that you will need to do if you intend to hold it till maturity.

    Reply
Daniel says 7 years ago

Thanks for your articles sharing. It’s really help me to find out what is capitamall bond about.

Reply
Kelly says 7 years ago

I am interested to buy the latest Capital Land 10-Year Bond which closes on 9 Jan. If I hold it till end of 10 years, is capital guaranteed? Also, may I know if the interest is compounded? What if I decide to redeem it at the end of 5 years, will capital still be guaranteed? Thanks

Reply
    Martin Lee says 7 years ago

    Hi Kelly,

    You will get back your capital at the end of 10 years as long as the issuer does not go bust.

    If you need your money back earlier, you will have to sell it on the secondary market on SGX. How much you get will depend very much on prevailing prices.

    Reply
Bin Hee Jum says 7 years ago

btw, Savvy, you can apply through public offer and placement. Mutiple applications are not allowed only for public offers. Please see T&C in offer document below:

MULTIPLE APPLICATIONS MAY BE MADE IN THE CASE OF APPLICATIONS BY ANY
PERSON FOR (I) PLACEMENT BONDS OFFERED UNDER THE PLACEMENT OR (II)
PLACEMENT BONDS OFFERED UNDER THE PLACEMENT TOGETHER WITH A SINGLE
APPLICATION FOR THE PUBLIC OFFER BONDS UNDER THE PUBLIC OFFER.

Reply
Savvy says 7 years ago

I had the same experience as Hee Jun, as such I gotten it through the public placement. In fact I read the clause to the DBS relationship manager what was stipulated on the ST that private placement fthrough DBS is a minimum sum of 50K. Only in the late afternoon, the relationship manager of DBS called me but I told him too late as I already made placcement through public offering. This is ridiculous – Now I am not sure if i will allocated the amount I subscribed for??? I suppose if I am not successful in the placement can I take this matter with DBS management? Looks like none of their staff who call us up to buy know what they are doing???

Reply
    Bin Hee Jum says 7 years ago

    After some chasing via email and my insistence that they give me an offcial reply that DBS accepts only mimimum $250k so that i cna take up the matter with MAS, she came back and said they made a mistake and the reply from the RM was

    ” I have checked with my bond department and was told that usually for
    > all
    >> corporate bonds the min investment is set at 250k for our Accredited
    >> Investors. But for this issue, there was exceptional approval for the
    >> minimum investment to be 50K.
    >>
    >> An email was just sent out to us just now to inform us that the
    > minimum
    >> subscription for the above bond is $50K.
    >>
    >> Thanks for highlighting it to me.”

    No words of apology and I wrote

    ” I am very surprised that a retail customer has to highlight this to a
    > professional and DBS can sent out emails to ist relationship managers
    > with such incorrect instructions.”

    Then she said she will apply for me. How do I know she raelly did?

    Reply
      Martin Lee says 7 years ago

      Not too sure she can do it for you as the Placement has already closed.

      Reply
Bin Hee Jum says 7 years ago

On the private placement, I called the relationship manager of DBS Bank and was told that the minimum sum which she was instructed to take from an internal DBS email was $250k and not $50k. Is DBS allowed to deviate from the Offer Document?

Reply
    Martin Lee says 7 years ago

    Hi Hee Jum,

    it could be the case that it is the amount before the RM wants to meet up to do the transaction. Application can also be done directly at a DBS branch.

    I wanted to try out today but unfortunately it seems they have already closed the placement.

    Reply
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