Keppel Corp to raise S$500m via two note issues

CONGLOMERATE Keppel Corporation has priced the issue of its S$150 million 3 per cent notes due 2024 and S$350 million 3.66 per cent notes due 2029, it said on Monday night after the market closed.

They are expected to be issued on or about May 7, 2019, and are expected to be listed on the Singapore Exchange on or about the following business day after the issue.

Net proceeds from the issuance will be used for general corporate or working capital purposes.

They will be issued under Keppel Corp's US$5 billion multi-currency medium-term note programme. The company had on Monday morning increased the limit of the programme from US$3 billion to US$5 billion.

The S$150 million notes will bear interest at a fixed rate of 3 per cent per year, payable semi-annually in arrear and have a tenor of five years.

The S$350 million notes will bear interest at a fixed rate of 3.66 per cent per year, payable semi-annually in arrear and have a tenor of 10 years.

The notes will constitute direct, unconditional and unsecured obligations of Keppel Corp, and at all times rank pari passu, without any preference or priority among themselves. They will also rank pari passu with all other present and future unsecured obligations of the company, other than subordinated obligations and priorities created by law.

Oversea-Chinese Banking Corporation (OCBC Bank) has been appointed the sole dealer of the notes.

Keppel Corp shares closed down 16 Singapore cents or 2.3 per cent to S$6.79 on Monday.