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CMT fully utilises proceeds from S$250m private placement in 2011

CapitaLand Mall Trust (CMT) has utilised the remaining net proceeds worth S$15.1 million from a private placement exercise four years ago to pay for certain committed capital expenditure and asset enhancement initiatives (AEI) of the properties in its portfolio.

The private placement was carried out in October 2011 and raised gross proceeds of about S$250 million through the placement of 139.7 million new units at S$1.79 each.

It had said then that the manager intended to use a bulk or 90-95 per cent of the net proceeds from the exercise to finance capital expenditure and for AEIs and the remaining for general corporate and working capital purposes. Notwithstanding that, it said the manager may use the net proceeds at its discretion for other purposes.

In an announcement to the stock exchange on Friday, the trust said the the portion of the unutilised proceeds for general corporate and working capital purposes has instead been used to pay for committed capital expenditure and AEIs.

The change was in line with its active capital management strategy, said CMT's manager, CMT Management.

The trust added two Singapore cents or nearly one per cent to finish at S$2.05 on Friday.