CapitaLand China Trust raises Free Trade Zone (FTZ) offshore CNY600 million bonds

First Singapore-based issuer to launch FTZ offshore bonds, diversifying fundraising opportunities to fuel long-term growth

Singapore, October 13, 2023 -- CMB International Capital (Singapore) Pte. Limited, DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited acted as the joint global coordinators, lead managers and bookrunners for the transaction.

CapitaLand China Trust is diversifying its fundraising opportunities by becoming the first Singapore-based issuer to launch CNY600 million (approximately S$112 million) free trade zone offshore CNY bonds. The bonds, which will be listed and traded on the SGX-ST, will be due in 2026. The bonds will offer a coupon rate of 3.80 per cent per annum, payable annually in arrear.

CapitaLand China Trust Management Limited (“CLCTML”), the manager of CapitaLand China Trust (“CLCT”), is pleased to announce that CLCT MTN Pte. Ltd., a wholly-owned subsidiary of CLCT, has successfully priced its inaugural CNY600 million (approximately S$112 million) free trade zone (“FTZ”) offshore CNY bonds due 2026 (the “Bonds”).

This transaction marks CLCT’s first issuance of bonds denominated in CNY within the China (Shanghai) Pilot Free Trade Zone. The Bonds have a tenor of three years with a coupon rate of 3.80 per cent per annum, payable annually in arrear. The Bonds will be listed and traded on the SGX-ST. Net proceeds from the offering of the Bonds will be on-lent to CLCT to refinance its existing indebtedness and/or to meet working capital requirements outside China. 

FTZ offshore CNY bonds are issued within the China (Shanghai) Pilot Free Trade Zone and are recorded in China Central Depository & Clearing Co., Ltd., offering foreign issuers a gateway to access a unique CNY investor pool and product. As the first FTZ offshore CNY bonds issued by a Singapore-based issuer, the Bonds will enable CLCT to access the debt capital markets in China, Hong Kong, China and Singapore. Proceeds from the Bonds can be remitted overseas outside the China (Shanghai) Pilot Free Trade Zone. 

Mr Tan Tze Wooi, CEO of CLCTML, said: “CLCT’s inaugural launch of the Bonds underscores our ability to attract a high level of investor confidence and strong banking support, both within and outside of China. We are pioneering a landmark initiative as the first Singapore Real Estate Investment Trust (S-REIT) to issue FTZ offshore CNY bonds, paving the way for wider market acceptance by exposing Chinese institutional investors to S-REITs. Through this initiative, CLCT will broaden and diversify its funding sources for greater financial flexibility, expanding our CNY-denominated facilities from 13% (as at 30 June 2023) to 18%, achieving overall interest savings as we pay down existing SGD-denominated offshore debt while optimising our capital structure to fuel long-term growth.”

“This transaction will enhance the funding sources of our operations with the local currency corresponding to the revenue generated from our investments, mitigating the impact of currency risk and exchange rate fluctuations. CLCT will continue to proactively manage its balance sheet and capital structure, leveraging favourable financial instruments to achieve an optimal mix of onshore and offshore borrowings while reducing its overall cost of debt.” 

Mr Tan Tze Wooi, CEO of CLCTML

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