You are here

Oxley's bonds under placement see four times subscription

HOMEGROWN developer Oxley Holdings said on Wednesday its maiden offering of four-year retail bonds to private banking, and institutional and other investors under the placement has been oversubscribed with a subscription rate of about four times.

The placement of up to S$25 million received valid applications in respect of about S$100 million in aggregate principal value of bonds within a day of launching the offer.

In view of the strong interest received, S$50 million of bonds from the public offer were reallocated to the placement such that S$75 million of bonds are being offered under the placement and S$50 million under the public offer.

Oxley had on Tuesday launched its maiden retail bond offering of up to S$125 million of four-year bonds due 2019 with a 5 per cent fixed annual interest payable semi-annually in arrear.

"The strong interest received from investors is a strong indication of the investment merits of our 4-year 5 per cent bonds, and investor confidence in our business strategies and growth potential," said Oxley's executive chairman and CEO Ching Chiat Kwong.

"We view our retail bond offering as an avenue to diversify our investor base, as well as a step towards further developing the Singapore bond market," he added.

While applications for bonds under the placement have closed, applications for bonds under the public offer remain open until noon on Nov 3. In the event of oversubscription in the public offer, Oxley may increase the issue size of the public offer from the current S$50 million to up to S$225 million.