Cordlife sets up S$500m issuance programme

Singapore

CORDLIFE Group Ltd has set up a S$500 million multicurrency debt issuance programme, the group said on Tuesday.

The net proceeds from the issue of securities will be used for Cordlife's general corporate purposes, the group said. This includes the financing of potential acquisitions, strategic expansions, general working capital, capital expenditure and the group's investments.

Approval in principle has been received from the Singapore Exchange Securities Trading Ltd for the establishment of the programme. Under the programme, the company may from time to time issue notes and/or perpetual securities.

Maybank Kim Eng Securities has been appointed to act as the sole arranger and the dealer of the programme.

Earlier this year, Cordlife announced that it had agreed to buy senior convertible notes in China Cord Blood Corporation (CCBC), which if fully converted, would increase the former's stake in the latter from 10.02 per cent to almost 18 per cent.

At the same time, Cordlife agreed to lend up to US$46.5 million to Magnum Opus International, a vehicle controlled by CCBC's chairman Kam Yuen, for the purchase of CCBC senior convertible notes as well.

In October, Cordlife said it intends to convene an extraordinary general meeting in order to get shareholders' approval for these transactions. Cordlife's counter closed two Singapore cents lower at S$1.075 on Tuesday.

Separately, Tuan Sing Holdings said on Tuesday that it had issued S$80 million in 4.5 per cent per annum notes which come due in 2019 under its S$900 million multicurrency medium term note programme set up in 2013.