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Ascendas India Trust to launch private placement to raise no less than S$75m
ASCENDAS India Trust's (a-iTrust) trustee-manager announced a proposed private placement of at least 73.1 million new units in a-iTrust at an issue price of between S$1.027 and S$1.083 per new unit to raise gross proceeds of no less than S$75 million.
The issue price range of between S$1.027 and S$1.083 per new unit represents a discount of between 4 per cent and 9 per cent to the volume-weighted average price of S$1.1285 per unit for all trades in the units done on the Singapore Exchange on Feb 5, 2018.
The issue price will be determined by the trustee-manager and the joint bookrunners and underwriters following a book-building process. An announcement will be made once the issue price has been determined.
The trustee-manager intends to use 98 per cent from the gross proceeds of no less than S$75 million from the private placement to repay most of the bridging loan drawn down to finance the acquisition of the operating warehouses at the Arshiya Free Trade Warehousing Zone as announced on Nov 23, 2017. The remaining 2 per cent is expected to pay the estimated fees and expenses, including professional fees and expenses, incurred or to be incurred by a-iTrust in connection with the private placement.
The private placement is expected to strengthen a-iTrust's balance sheet and enhance its financial flexibility to fund committed investments and developments, as its gearing is expected to be reduced from approximately 35.1 per cent to 30.9 per cent. This will provide greater flexibility to a-iTrust to fund its committed investments, developments and growth opportunities in India, said the trustee-manager.