MALAYSIA
DEBT CAPITAL MARKETS
› CIMB GROUP PLANS T2
CIMB GROUP HOLDINGS is pre-marketing a Tier 2
issue to raise up to M$1.2bn (US$296.5m).
Proceeds will be used to redeem a
M$750m Tier 2 note that was sold in 2013
by banking arm CIMB Bank as the group’s
first subordinated bank capital deal under
the Basel III regime. The 4.8% bonds are
callable on September 13.
CIMB Investment Bank is sole lead manager
for the new transaction.
The Malaysian financial institution is
rated AAA by RAM and Marc.
EQUITY CAPITAL MARKETS
› RHB BANK BLOCK FETCHES M$610M
Abu Dhabi sovereign fund Mubadala
Investment has raised M$610m (US$149m)
from the sale of part of its stake in
Malaysia’s RHB BANK.
Aabar Investments, a unit under
Mubadala, sold 120m shares at the bottom
of an indicative price range of M$5.07–
$5.18 each. The final price represents a
discount of 5% to the pre-deal spot.
There is a 60-day lock-up on the vendor.
After the sale, Aabar owns around a
14% stake in the lender.
JP Morgan was the sole global coordinator
and joint bookrunner with CIMB.NEW ZEALAND
DEBT CAPITAL MARKETS
› Z ENERGY MARKETS SIX-YEAR NOTEZ ENERGY has mandated Deutsche Craigs ,
Forsyth Barr and Westpac New Zealand as
joint lead managers for a potential offer of
NZX-listed six-year fixed-rate notes to New
Zealand institutional and retail investors,
expected to open this week.
The fuel distributor, which runs the
network of former Shell petrol stations, has
four retail bonds outstanding, including
a NZ$150m (US$99m) 7.25% note that
matures on August 15.SINGAPORE
DEBT CAPITAL MARKETS
› CMT SNAPS SUPPLY DROUGHTCAPITALAND MALL TRUST last Tuesday priced
S$150m (US$109.2m) of seven years at parto yield 3.2%, or a spread of 83.5bp over
Singapore dollar SOR.
The Singapore property trust, rated A2
by Moody’s, will settle the notes on August- This is the first Singapore dollar deal
to emerge in three weeks since Malaysia’s
Cagamas placed a S$65m 2.52% bond on
July 26.
CMT MTN will be the issuer of the
unsecured notes, expected to be rated A2 by
Moody’s. HSBC Institutional Trust Services,
in its capacity as CMT trustee, will be the
guarantor. The bonds will be issued off a
S$3.5bn multi-currency MTN programme.
Proceeds will be used to refinance debt
and to fund general corporate and working
capital needs.
DBS and OCBC were joint lead managers
and bookrunners.
EQUITY CAPITAL MARKETS
› KBS PLANS US$1BN REIT IPOKBS COMMERCIAL REIT , which comprises US
commercial properties, plans to raise about
US$1bn in a Singapore IPO as early as
October, according to people close to the deal.
The trust, backed by US-based
commercial property owner KBS Realty
Advisors, is firming up cornerstone
investors, said the people.
Bank of America Merrill Lynch and DBS are
leading the transaction.
KBS Realty Advisors partnered with
Singapore’s Keppel Capital last November
to list Keppel-KBS US REIT, which raisedBlackstone real estate unit seeks facility
Loans PE giant looks to leverage worker dormitories in SingaporeAVERY STRATEGIC INVESTMENTS , a real estate unit
of private equity firm Blackstone Group, is
seeking to raise up to S$400m (US$290m) in
secured credit facilities.
Deutsche Bank is the sole mandated lead
arranger, bookrunner and underwriter of
the transaction, which comprises a S$330m
facility A and a S$70m facility B. The tranches
are further divided into facilities A1 and A2,
and facilities B1 and B2.
Before the launch into limited syndication,
Bank of China Singapore joined as MLAB,
committing S$100m. Facility A was disbursed
by the MLABU in full on June 25.
The transaction, which is secured by four
worker dormitories in Singapore, pays an
interest margin of 225bp over SOR and has a
remaining average life of 4.5 years.Lenders receive a top-level all-in pricing of
241.67bp and the MLA title for commitments
of S$75m or above based on a participation
fee of 75bp, an all-in of 236.11bp and the lead
arranger title for tickets of S$50m–$74m via
a 50bp fee, or an all-in of 230.56bp and the
arranger title for S$25m–$49m via a 25bp fee.
The deadline for commitments is
August 31. A bank presentation was held in
Singapore on Wednesday.
The proceeds of facility A are for
refinancing existing debt, payment of
transaction expenses, funding the debt
service reserve account and general
corporate purposes. The proceeds of facility
B will be used to finance the premium
relating to the extension of certain leases
by Jurong Town Corp and payments relatedto DSRA, fees and expenses.
Incorporated in Singapore, the borrower
is the third-largest operator of permanent
worker dormitories in the Lion City. The
company owns four properties with about
23,000 beds, representing about 10% of
Singapore’s dormitory bed supply.
The borrower’s sponsor is Blackstone,
which has held a 41.8% effective stake in the
company since 2014. Other shareholders
include the National University of Singapore
(25.2%), the Government of Brunei
Retirement Fund (24.4%) and Nanyang
Technological University of Singapore (6.7%).
Blackstone is buying a 55% stake in
Thomson Reuters’ Financial & Risk unit,
which includes LPC and IFR.
CHIEN MI WONG