CapitaMall Trust raised $250m through private placement of new units

The manager of CapitaMall Trust (CMT), says 139,665,000 new units have been successfully placed through a private placement at an issue price of $1.79 per unit, raising gross proceeds of $250 million.

CMT says the private placement is expected to reduce CMT’s aggregate leverage from 40.1% to 39.0%. The proceeds will be primarily used to finance CMT’s capital expenditures and upcoming and ongoing asset enhancement initiatives such as JCube, The Atrium@Orchard and Iluma. The balance proceeds will be used for working capital and general corporate purposes.

The issue price of $1.79 per new unit represents a discount of 4.8% to the adjusted volume weighted average price of $1.88 per unit, for trades in the units done on SGX on 28 October.

The new units will be issued to over 30 existing and new institutional investors from Asia, the United States and Europe.