SGX unit to issue zero coupon guaranteed convertible bonds due 2024,

Mon, Feb 01, 2021 – 7:32 PM

AN indirect wholly-owned subsidiary of the Singapore Exchange (SGX) is seeking to raise around 240 million euros (S$386 million) from zero coupon convertible bonds, to refinance its existing debt and for other corporate purposes.

SGX Treasury I intends to issue the bonds, which will mature in 2024, to institutional and other investors. The bonds will be convertible into ordinary shares in SGX, and are guaranteed by SGX, said the bourse in a regulatory filing on Monday evening.

Approximately 80 per cent of proceeds from the deal will be used to refinance SGX’s existing debt, while around 20 per cent will be used for general corporate purposes.

Terms of the convertible bonds will be confirmed upon the pricing of the issue, which is expected to take place on or about Monday, it said. The closing date for the issue is expected to be on or around March 1, and is conditional upon the in-principle approval of the Monetary Authority of Singapore.

Credit Suisse and Morgan Stanley Asia have been appointed as the joint global coordinators and bookrunners for the issue.

SGX shares closed at S$9.92 on Monday, up S$0.02 or 0.2 per cent, before the announcement.