Healthway Medical, Yanlord Land, DBS, Frasers Centrepoint to raise funds

HEALTHWAY Medical, Yanlord Land, DBS Bank and Frasers Centrepoint are raising funds through note issues.

Healthway Medical announced before the opening of Tuesday trading that it has entered into an agreement with GW Active on Monday to issue S$10 million in convertible notes and S$60 million in non-convertible notes.

The maturity period is two years from the issue date, and the conversion price for the convertible notes is based on S$0.03384 per conversion share.

The directors of Healthway Medical said that the issue of the notes will be necessary to address the group's short-term liquidity needs and meet its working capital requirements.

The company has also taken the opportunity to raise additional funds to strengthen its balance sheet to support its growth initiatives.

The company intends to use about 20 per cent of the approximately S$68.3 million net proceeds to repay existing bank borrowings, another 20 per cent for general working capital and the remainder to pursue both organic and inorganic growth.

Yanlord Land also announced before the opening of Tuesday trading a proposed issuance of US$450 million senior notes with a maturity date on January 2022.

The notes will bear interest at the rate of 5.875 per cent per annum, payable semi-annually in arrears.

The issue date of the notes is expected to be on or about Jan 23, and the estimated net proceeds of the notes are about US$444.7 million after deduction and expenses.

It will be used for refinancing of debts, project development and acquisition.

On Monday, DBS Bank successfully priced the issue of 750 million euro fixed rate covered bonds due 2024.

The bonds are under the bank's US$10 billion Global Covered Bond Programme, established in June 2015 and updated in April last year.

The covered bonds will bear a fixed coupon of 0.375 per cent per annum payable yearly in arrears. The settlement date is expected to be Jan 23, and net proceeds arising from the issue will be used for the general business purposes of DBS Bank and its consolidated subsidiaries.

Frasers Centrepoint also announced that its wholly owned subsidiary FCL Treasuryestablished a S$5 billion Multicurrency Debt Issuance Programme on Monday.

The net proceeds will be used for the refinancing of existing borrowings, financing of potential acquisition and investment opportunities which Frasers Centrepoint and its subsidiaries may pursue in the future, as well as working capital needs and the general corporate purposes of the group.