MMP Resources to issue convertible bonds, place 8m shares with controlling shareholder
MMP Resources, which invests in construction-related firms, will be issuing convertible bonds to its controlling shareholder, Maiora Asset Management, for a total principal amount of up to S$100,000, and placing some eight million shares for another S$43,000.
The estimated net proceeds of about S$114,500 will be used for investment in the company's construction opportunities in Tier 1 markets, as well as operating expenses, said MMP Resources.
Maiora, which holds 19.52 per cent of MMP Resources, is a Singapore fund manager which conducts financing and renewable energy businesses across Asia.
It will subscribe for 7.99 million placement shares for S$43,149, or 0.53 Singapore cent each, which represents a discount of about 10 per cent to the volume weighted average price of 0.6 cent on Nov 14.
The convertible bonds, which will bear interest at 12.5 per cent each year and mature in 2021, will be issued in denominations of S$50,000 each.
Maiora is investing in MMP Resources through its Asian structured Finance Segregated Portfolio, a fund which invests in primary loans with "outstanding risk reward characteristics" across the Asia-Pacific, the announcement said.
The fund had also previously provided a bridge loan for solar plants in Japan, a senior loan to an Indonesian coal mine and various Japanese mezzanine real estate loans.
MMP will be holding a extraordinary general meeting to obtain shareholders' approval for these deals.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Microsoft launches lightweight AI model
Gucci-owner Kering posts 10% drop in Q1 sales on sluggish Chinese demand
Hotel Properties prices 5-year notes at 5.1%
Apple to hold launch event on May 7, with new iPads expected
OUE Reit obtains S$600 million unsecured sustainability-linked loan
US: Wall St opens higher as more earnings roll in