CapitaLand Buying Back Bonds With New Issue to Cut Service Costs
CapitaLand Ltd. (CAPL), Southeast Asia’s biggest developer, said it will buy back some of its existing convertible bonds with proceeds from a new note.
The company will be issuing S$600 million of new convertible securities, while redeeming its convertible bonds due in 2016 and 2018, according to a statement to the Singapore stock exchange today.
CapitaLand is making the offer “to reduce the principal amount of the outstanding indebtedness and ongoing debt service obligations,” it said in the statement.
The company issued S$650 million of 1.85 percent convertible notes in May.
Convertible bonds contain a provision that permits conversion to the issuer’s common stock at some fixed exchange ratio.
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