Keppel Infrastructure Trust to launch equity funding exercise to raise at least S$240 million
THE manager of Keppel Infrastructure Trust (KIT) announced on Tuesday (Apr 18) plans to launch an equity funding exercise to raise gross proceeds of at least S$240 million.
This comprises a private placement at a price between S$0.464 and S$0.477 per placement unit and a non-renounceable preferential offering at a price between S$0.464 and S$0.467 per new unit.
Between 262,055,000 and 269,397,000 new units will be issued to institutional and other investors to raise gross proceeds of approximately S$125 million, while up to 249,612,694 new units will be offered to entitled unitholders to raise around S$115 million.
The total number of placement units and preferential offering units will not exceed 758,763,838 new units, representing approximately 15.2 per cent of KIT units in issue.
As at Tuesday, Keppel Infrastructure Holdings (KIHPL) has a direct interest in 909,048,658 units, translating to around 18.21 per cent of the units in issue.
The manager noted that it had an irrevocable undertaking with KIHPL to subscribe and pay for placement units to maintain its unit holding percentage and provisional allotments of preferential offering units.
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Citigroup Global Markets Singapore, DBS, HSBC, Singapore Branch, OCBC and UOB have been appointed as the joint lead managers, bookrunners and underwriters for the exercise.
The placement issue price and preferential offering price will be determined by the joint lead managers, bookrunners and underwriters following a book-building process.
KIT’s manager previously announced its acquisitions of the Wind Fund, Eco Management Korea and Borkum Riffgrund 2 Investor last year at a total cost of approximately S$721 million.
This was paid for by a combination of internal funds and external borrowings, including bridge facilities, of approximately S$579.5 million.
Assuming that gross proceeds of S$240 million are raised from the equity fundraising, the manager intends to use approximately S$233.5 million for the partial repayment of bridge facilities and around S$6.5 million for payment of the fees and expenses incurred from the exercise.
The placement is expected to launch on Apr 18 and close on Apr 19 while the preferential offering will begin on May 2 and close on May 10 at 5.30 pm.
Units of KIT ended Monday flat at S$0.515.
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