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Chip Eng Seng unit to launch S$100m 6% notes due 2022

CHIP Eng Seng's wholly-owned subsidiary CES Treasury on Wednesday launched its S$100 million 6 per cent notes due 2022.

The Series 004 notes guaranteed by Chip Eng Seng are part of its S$750 million multi-currency debt issuance programme, to be issued on March 15 2019 and mature on March 15 2022. The notes will be issued at a price of 100 per cent of their principal amount and in denominations of S$250,000, bearing interest at a fixed rate of 6 per cent per annum payable semi-annually in arrear.

DBS is the sole arranger of the programme, and has been appointed the sole global coordinator, sole bookrunner and lead manager of the Series 004 notes. Haitong International Securities (Singapore) has been appointed an additional lead manager of the Series 004 notes.

The net proceeds arising from the issue of the Series 004 notes will be used for general corporate purposes of the group, including refinancing the existing borrowings, financing the investments and for the general working capital purposes of the group.

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Certain controlling shareholders and directors of the company and their family members have been allocated approximately 32 per cent of the entire issue of the Series 004 notes, according to Chip Eng Seng.