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MMP Resources to issue convertible bonds, place 8m shares with controlling shareholder

MMP Resources, which invests in construction-related firms, will be issuing convertible bonds to its controlling shareholder, Maiora Asset Management, for a total principal amount of up to S$100,000, and placing some eight million shares for another S$43,000.

The estimated net proceeds of about S$114,500 will be used for investment in the company's construction opportunities in Tier 1 markets, as well as operating expenses, said MMP Resources.

Maiora, which holds 19.52 per cent of MMP Resources, is a Singapore fund manager which conducts financing and renewable energy businesses across Asia.

It will subscribe for 7.99 million placement shares for S$43,149, or 0.53 Singapore cent each, which represents a discount of about 10 per cent to the volume weighted average price of 0.6 cent on Nov 14.

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The convertible bonds, which will bear interest at 12.5 per cent each year and mature in 2021, will be issued in denominations of S$50,000 each.

Maiora is investing in MMP Resources through its Asian structured Finance Segregated Portfolio, a fund which invests in primary loans with "outstanding risk reward characteristics" across the Asia-Pacific, the announcement said.

The fund had also previously provided a bridge loan for solar plants in Japan, a senior loan to an Indonesian coal mine and various Japanese mezzanine real estate loans.

MMP will be holding a extraordinary general meeting to obtain shareholders' approval for these deals.