Keppel Infrastructure Trust said on Thursday it planned to raise S$450 million via a placement of new units with institutional and other investors and via a separate preferential offering of new units.
The issue price of the new units will be determined in a book building process, with the announcement expected on Friday, it said in a filing to SGX on Thursday.
The funds are earmarked mainly to partially repay a facility agreement the trust entered in February to finance its acquisition of Ixom HoldCo for A$770 million, KIT said.
The preferential offering’s pricing won’t exceed a 10 percent discount to the volume weighted average price of KIT’s units on 12-13 March, it said. KIT’s units were place on a trading halt on Wednesday.
Keppel Infrastructure Holdings Pte. Ltd. (KIHPL), which has a direct interest in 702.36 million KIT units, or an 18.2 percent stake, has provided an irrevocable undertaking to subscribe for the placement and preferential units to maintain its 18.2 percent stake, the filing said.
The placement is expected to take place before the preferential offering, the filing said.
Credit Suisse (Singapore), DBS Bank, HSBC’s Singapore branch and UOB have been appointed as joint lead managers, bookrunners and underwriters, the filing said.