- Issue of zero-coupon convertible bonds due 2024 has been fully placed with a high-quality book of institutional investors
Singapore Exchange (SGX) today announced that it has, via its wholly-owned subsidiary SGX Treasury I Pte. Ltd., successfully issued EUR240 million of convertible bonds. The payment of the convertible bonds is fully guaranteed by SGX. The offer was more than four times oversubscribed.
The three-year zero-coupon bonds can be converted into ordinary shares of SGX at an initial conversion price of S$13.0944, which is a 32% premium over the closing price of S$9.92 on 1 February 2021. This represents a negative yield to maturity of 0.331% per annum.
The bond proceeds will be used to refinance existing debt and for general corporate purposes.
Loh Boon Chye, Chief Executive Officer of SGX, said, “We are pleased with the strong support from investors for our maiden convertible bond issue. The attractive terms underscore strong investor confidence in SGX’s credit fundamentals, solid business model and growth prospects. This issuance further diversifies our funding sources as we continue to identify strategic opportunities to drive growth across multiple asset classes.”
Credit Suisse (Singapore) Limited and Morgan Stanley Asia (Singapore) Pte. have been appointed as the joint global coordinators and bookrunners for the convertible bond issue.
