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Ascendas India Trust raises S$150m in upsized private placement

ASCENDAS India Trust (a-iTrust) on Wednesday said it has raised S$150 million in gross proceeds from its upsized private placement, which was 4.1 times subscribed.

The issue price was fixed at S$1.508 per new unit, the top end of the S$1.465 to S$1.508 range announced on Tuesday.

This represents 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.

It also represents a discount of 2.0 per cent to the adjusted VWAP of S$1.5390 per unit – which subtracts the advanced distribution of around 1.48 Singapore cents per unit.

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The number of new units has also increased to 99.5 million, from at least 66.3 million previously announced.

The group said on Tuesday that the gross proceeds from the placement 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 or 2 per cent of the gross proceeds will be used to pay estimated fees and expenses in connection with the placement.

The remaining S$3 million or 2 per cent 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.

a-iTrust’s trustee-manager said on Tuesday it would raise at least S$100 million from the private placement, which was offered to eligible institutional and other accredited investors.

The new units are expected to be listed on the Singapore Exchange on Nov 28, 9am, following approval from the bourse.

The trustee-manager has called for a lifting of a trade halt requested on Tuesday morning. The counter closed at S$1.54 on Monday.