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CapitaMall Trust to sell up to S$350m in seven-year bonds

CapitaMall Trust is testing investors' appetite for bonds amid the current turmoil in the stock market. It will sell up to S$150 million worth of seven-year bonds to retail investors.

SINGAPORE: CapitaMall Trust is testing investors' appetite for bonds amid the current turmoil in the stock market.

Singapore's largest real estate investment trust (REIT), whose properties include Plaza Singapura, Clarke Quay and IMM Building, will sell up to S$150 million worth of seven-year bonds to retail investors.

It will sell another S$50 million of the bonds to institutional investors. The bonds pay an annual interest rate of 3.08 per cent.

CapitaMall Trust will increase the bond issue to S$350 million if there is strong demand.

This is part of CapitaMall Trust's S$2.5 billion retail bond programme launched in 2011.

CapitaMall Trust's retail bond offering comes less than a week after Mohamed Mustafa & Samsuddin, the owner of the popular Mustafa department store in Little India, raised S$75 million through bonds that pay 4.75 per cent annually.

Investors had to fork out with a minimum of S$250,000 to buy the Mustafa bond.

For CapitaMall Trust, the minimum subscription is S$2,000. The public offer will close at 12 noon on February 18.

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