aiTrust's private placement raises S$150m

Singapore

ASCENDAS India Trust (a-iTrust) has raised S$150 million from a private placement that was upsized following strong demand from investors. The placement was 4.1 times subscribed.

The issue was priced at S$1.508 apiece, at the top end of the S$1.465 to S$1.508 indicative range announced on Tuesday.

This represented a 2.9 per cent discount to the volume-weighted average price (VWAP) of S$1.5538 per unit for all trades done on Nov 18, the full market day prior to the placement agreement being signed.

The discount to the adjusted VWAP of S$1.5390 per unit was 2 per cent - which takes into account the subtraction of an advanced distribution of around 1.48 Singapore cents per unit.

The group said on Tuesday that the gross proceeds from the placement, which will see the issuance of 99.5 million new units, will be used to fund its potential investment in a business park in Bangalore.

Out of the S$150 million in gross proceeds, S$144 million or 96 per cent will be used to partially finance the initial upfront funding of phase one of the project - which costs 7.5 billion rupees (S$144 million).

Around S$3 million of the gross proceeds will be used to pay estimated fees and expenses in connection with the placement.

The remaining S$3 million will be used as project funding for existing pipeline projects committed which have been announced, and to repay existing indebtedness, the trustee-manager said.

It added that it may use the net proceeds from the placement at its "absolute discretion" for other purposes should the potential investment not materialise - subject to relevant laws and regulations. Uses include project funding for existing projects or repaying existing indebtedness.

The use of net proceeds will see a-iTrust's gearing fall to 31.3 per cent, from 33.3 per cent.

The new units are expected to be listed on the Singapore Exchange on Nov 28.

a-iTrust units closed at S$1.53 on Wednesday, down one cent or 0.7 per cent.