iFast sets up S$300 million multi-currency debt issuance programme
Net proceeds raised will be used for general corporate purposes
IFAST Corporation has established a S$300 million multi-currency debt issuance programme to issue notes or perpetual securities.
Net proceeds raised will be used for general corporate purposes such as refinancing certain borrowings, financing capital expenditure, investments and general working capital of the group, the financial services company said on Wednesday (May 29).
Notes issued under the programme may bear interest at fixed, floating, variable, hybrid or other rates. They may also not bear any interest.
Meanwhile, perpetuals issued under the programme may grant securityholders the right to receive distributions at fixed or floating rates, or potentially have distributions deferred at the option of the company.
The debt issuance programme has received in-principle approval from the Singapore Exchange. OCBC is the sole arranger and dealer of the facility.
Shares of iFast ended S$0.04 or 0.6 per cent down at S$6.86, before the news.
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The company last month reported a 387.4 per cent spike in net profit to S$14.5 million for its first quarter ended Mar 31, 2024, from S$3 million, as revenue rose 53.1 per cent year on year to S$78.8 million.
An interim dividend of 1.3 Singapore cents per ordinary share was declared for the quarter, up from one cent the year before.
In view of the strong quarterly results, analysts recently raised their ratings and target prices on the stock, as they project iFast to deliver stronger growth in the fiscal years ahead.
The group’s latest quarter’s bottom-line growth was mainly driven by contributions from its ePension business unit, as well as improvements in its core wealth management platform business.
Addressing shareholder questions at the company’s annual general meeting on Apr 26, iFast chairman and chief executive officer Lim Chung Chun said he expected “some increase” in revenue contributions from the ePension project towards the later part of the year and going into next year.
Though he said cash flows from the project were not as strong as what profitability suggested during the initial two to three quarters due to a delay in payment received, Lim noted that inflows have been picking up since April 2024. He also expects cash flows to be “comfortable and consistent” in the future.
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