Aspial raising up to S$75m in its first retail bond offer
Group also says SGX has no objection to its proposed listing of Australia and Malaysia real estate businesses
Singapore
SINGAPORE-LISTED Aspial Corporation, whose diverse business portfolio spans real estate, jewellery and financial services, is issuing retail bonds for the first time to raise up to S$75 million.
The offering comprises a public tranche of up to S$50 million to the Singapore public and a placement tranche of up to S$25 million to institutional and other investors outside the United States.
These five-year bonds due in 2020 come with fixed interest of 5.25 per cent per annum, payable semi-annually in arrear, according to the bond offer document lodged with the Monetary Authority of Singapore.
"This marks yet another milestone for Aspial as we widen our sources of fund-raising by tapping into the bond market to access an entirely new investor base," said Aspial's CEO Koh Wee Seng.
"The bond offering is accessible by institutions, private banking investors and the general public, raising the group's profile in the investment community and allowing investors to own a stake in a well-known household name," he added.
The public and placement tranches are respectively subject to a minimum of S$2,000 and S$100,000 per application. The offer is guaranteed by Aspial and the bonds will be issued by its wholly owned subsidiary Aspial Treasury Pte Ltd.
Aspial said it plans to use the net proceeds from the offer for general corporate funding purposes, working capital and capital expenditure requirements, and investments.
DBS Bank Ltd is the sole lead manager and bookrunner for the bond offer. The offer could be expanded to up to an aggregate of S$150 million in the event of over-subscription; or be cancelled in the event that less than S$50 million in applications are received.
Also giving an update on its proposed listing of its real estate business on the Catalist, Aspial said that SGX has advised that it has no objection to the proposed spin-off, subject to Aspial complying with the SGX listing requirements.
The group is proposing to undertake a spin-off of its real estate business in Australia and Malaysia to be listed on the Catalist. It had said in its 2014 annual report that it was switching its strategic focus to the overseas markets of Australia and Malaysia this year in light of the soft property market in Singapore.
Its subsidiary World Class Land is developing residential projects The Hillford and Waterfront@Faber and is in joint venture with Fragrance Group for residential projects City Gate and Urban Vista in Singapore.
World Class Land is also developing the iconic 101-storey Australia 108 project in Melbourne, Australia - set to be the tallest residence in the Southern Hemisphere. In Malaysia, Aspial has purchased and is in the process of purchasing land and properties costing about RM250 million for commercial and residential investment and development.
Based on units sold as at Aug 6, Aspial has locked in total revenue of about S$620 million in Singapore to be recognised progressively under the percentage-of-completion method and over A$1.05 billion of sales revenue in Australia from its Australia 108 and Avant projects to be recognised upon completion.
Aspial noted that at current market prices, the potential sales revenue from the group's remaining local and overseas property development projects is estimated to be in excess of S$2 billion.
The group also has a network of 53 jewellery retail stores across Singapore held under three main brands - Lee Hwa Jewellery, Goldheart Jewelry, and CITIGEMS - and one retail store in Ho Chi Minh, Vietnam. It provides financial services through its Catalist-listed subsidiary, Maxi-Cash Financial Services, which operates 40 pawnshops and retail outlets in Singapore.
After a successful takeover bid for LCD Global Investments early this year, the group has a deemed 64.1 per cent interest in LCD Global through its direct 9.5 per cent stake and an indirect stake through AF Global, a joint venture of Aspial and Fragrance Group.
LCD owns hospitality assets across Asia and the UK, the Zone X amusement chain, as well as a deemed 44 per cent interest in Knight Frank Singapore through an 80 per cent direct stake in Cheong Hock Chye & Co.
