Mapletree Greater Commercial China Trust has been granted provisional condition for their issuance of a $75 Million Bond on the 28th Aug and here are the terms and conditions:
- Issue Amount: $75 Million
- Maturity Date: 8 September 2021
- Coupon: 3.2%
- Issue Price: At Par Value
- Payment Date: Yearly on the 8th September
What does this mean for the Trust?
If we take a look at the issuance amount, it's really negligible and almost certainly they will not be used for any acquisition project for such an amount.
They are likely to be used for repayment purpose with their debt expiry profile looking like this:
- 2014: -
- 2015: $534 Millions (29%)
- 2016: $666 Millions (36%)
- 2017: $646 Millions (35%)
What this means is that with this issuance of debt, their costs of debts will increase marginally from 2% to 2.05% and gearing ratio will ...
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