STRAITS Trading&rsquo s S$370 million secured exchangeable bond offering has received applications for 1.9 times the amount on offer, the company said on Monday (Feb 13).

 

This puts the total demand from investors in terms of value at S$703 million.

 

The exchangeable bonds were also listed for trading on the Singapore Exchange on Tuesday, with interest payable on a semi-annual basis each year starting from Aug 13, 2023.

 

These bonds carry a coupon rate of 3.25 per cent due on Feb 13, 2028, and are exchangeable into ordinary shares of ESR Group at an initial exchange price of HK$22 per share. Compared with ESR&rsquo s closing price of HK$16.76 at the launch of the bonds on Jan 30, 2023, the initial exchange price represents a 31 per cent premium.

 

Net proceeds raised will be used to refinance the group&rsquo s existing borrowings, working capital, as well as capital expenditure and investments, said the company in an announcement last month.

 

&ldquo With the proceeds from the exchangeable bonds, Straits Trading aims to maintain a strong balance sheet with sufficient liquidity and position itself well for future opportunities in the market,&rdquo it added.

 

Chew Gek Khim, executive chairman of Straits Trading, said part of the proceeds will be used to carry out the company&rsquo s growth strategy.

 

Goldman Sachs is the overall coordinator and sole bookrunner of the deal.

 

THE Straits Trading Company : S20 +0.42% has priced S$370 million worth of secured exchangeable bonds maturing Feb 13, 2028.

 

Net proceeds will be used for the group&rsquo s refinancing of existing borrowings, to finance working capital, as well as capital expenditure and investments. 

 

In a bourse filing on Tuesday (Jan 31), Straits Trading said that the bonds will carry an interest of 3.25 per cent per annum, payable on a semi-annual basis on Feb 13 and Aug 13 in each year starting from Aug 13, 2023.

 

The bonds initially comprise 100,253,182 shares of par value of US$0.001 each.

 

Bondholders will be entitled to receive a pro rata share of 67,738.6364 shares for each S$250,000 principal amount of bonds, at the initial exchange price of HK$22.00 (S$3.69) for the exchangeables. 

 

The company will redeem each convertible bond at 100 per cent of its principal amount on the date of maturity, together with any accrued but unpaid interest.

 

On Oct 10, The Straits Trading Company : S20 -0.47% independent and non-executive director Chua Tian Chu acquired 7,000 shares of the company at S$2.26 per share. This took Chua&rsquo s total interest in the conglomerate-investment company to 64,000 shares, which represents close to 0.02 per cent of the outstanding shares. Chua was the deputy CEO of Meritus Hotels & Resorts from 2012 to 2013. Prior to this, Chua held the positions of executive vice-president of international sector and Greater China region, as well as head, global financial institutions group of United Overseas Bank, and managing director and head of investment finance of Citigroup Private Bank (Asia-Pacific region) as well as head of Citigroup Corporate Banking in Singapore.