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Stocks to watch: Keppel Infra Trust, Keppel Reit, Raffles Education, Sembcorp Industries
THE following companies saw new developments that may affect trading of their shares on Wednesday:
Keppel Infrastructure Trust (KIT): The trust on Tuesday proposed to issue S$100 million of subordinated perpetual securities at 4.75 per cent. Being perpetual, these securities have no fixed final redemption date and are expected to be issued on June 25. Net proceeds will be used for refinancing borrowings and general working capital purposes. KIT closed on Tuesday at S$0.495 before the announcement, up 0.5 Singapore cent or 1.02 per cent.
Keppel Reit: The Reit's (real estate investment trust) nearly 80 per cent owned subsidiary Ocean Properties has obtained a secured green loan facility worth S$505 million. One of the terms and conditions is that the lender may give notice to Ocean Properties as a borrower to prepay any outstanding loans if the manager ceases to be a directly or indirectly wholly owned subsidiary of Keppel Corporation. If such an event occurs and if it were to cause a cross default under other borrowings of the Keppel Reit group, the aggregate level of facilities that may be affected is estimated to be as at Tuesday S$3.4 billion, excluding interest and fees. Keppel Reit closed at S$1.25, up one Singapore cent or 0.81 per cent before the announcement.
Raffles Education: The private education operator's subsidiary Langfang Tonghui Education Consultancy (Tonghui) on Tuesday entered into a settlement agreement for a 2013 deal to divest some Hebei land and property due to "incomplete implementation" of an option agreement. In late-2013, Tonghui, then known as Hebei Oriental Zhuyun Property Development, struck a deal to sell land-use rights and property to Langfang He Ying Real Estate Development (He Ying), which saw the formation of a 70-30 joint venture (JV) firm and put option agreement. It has been now agreed that He Ying will hold 65.9 per cent and Tonghui will hold 34.1 per cent of the JV company's total equity interest respectively. Raffles Education closed at S$0.082 on Tuesday before the announcement, down 0.4 cent or 4.65 per cent.
Sembcorp Industries: The group said on Tuesday that it has signed a long-term agreement to install, own and operate over 15,000 rooftop solar panels with a total capacity of 6.3 megawatt peak on Experia Events' Changi Exhibition Centre. The solar energy system will be completed and installed in November 2019, and is expected to produce over 7,840 megawatt hours of power annually or enough renewable energy to power more than 1,750 four-room Housing Development Board (HDB) flats for a year. Sembcorp closed on Tuesday at S$2.39 before the announcement was made, up S$0.04 or 1.7 per cent.