CapitaLand China Trust Announces Key Updates to S\$1 Billion Multicurrency Debt Programme

CapitaLand China Trust (CLCT), managed by CapitaLand China Trust Management Limited, has announced significant updates to its S\$1,000,000,000 multicurrency debt issuance programme. These changes are effective from 2 January 2026 and may have a notable impact on the trust’s future financing activities and potentially its share value.

Key Points of the Announcement

• Programme Update: The trust’s multicurrency debt issuance programme, originally established in April 2012 and last amended in October 2017, has been further updated and amended as of January 2026. The amendments allow for:
  • Settlement and clearance of securities via the Central Moneymarkets Unit Service (CMU) operated by the Hong Kong Monetary Authority.
  • Appointment of Deutsche Bank AG, Hong Kong Branch, as CMU lodging and paying agent, CMU agent bank, CMU transfer agent, and registrar for securities settled through CMU.
  • Amendments to interest rate and distribution rate determination provisions, as well as benchmark discontinuation provisions for future issuances.
• No Impact on Outstanding Securities: The changes do not affect existing securities already issued under the programme. All rights, interests, and obligations for current holders remain unchanged.
• Programme Documents and Agency Agreement: The trust deed has been amended and restated by a second amendment and restatement trust deed dated 2 January 2026, which applies only to securities issued after this date. Additionally, a new CMU agency agreement has been executed between the Issuer, Deutsche Bank AG (HK Branch), and DBS Trustee Limited.
• DBS Bank Ltd. as Arranger and Dealer: DBS Bank Ltd. continues to act as the arranger and dealer for the programme.
• Potential Listing on SGX-ST: Each series of securities may be listed on the Singapore Exchange Securities Trading Limited (SGX-ST) if agreed between the Issuer and relevant dealers, subject to all necessary approvals.

Important Information for Shareholders and Potential Price Sensitivity

• Enhanced Market Access: The ability to settle and clear CLCT’s securities through CMU may facilitate access to a broader pool of investors, including those based in Hong Kong and international markets. This increased flexibility could improve liquidity and investor demand for new issuances.
• Interest Rate and Benchmark Changes: The amendments to interest rate, distribution rate determination, and benchmark discontinuation provisions might affect the pricing and attractiveness of future securities issued under the programme. Investors should monitor future issuances for details on these provisions, as they could impact returns.
• No Change to Existing Holders: Current holders of CLCT’s outstanding securities are not affected by these amendments, which helps maintain stability for existing investments.
• Programme Expansion & Internationalisation: The move to integrate CMU and appoint Deutsche Bank AG as agent signals CLCT’s intention to further internationalise its debt programme, possibly enhancing its financial flexibility and profile in regional capital markets.
• Share Price Sensitivity: While the announcement primarily relates to debt programme amendments, the expanded programme and potential for increased financing capacity and market access could be viewed positively by investors, possibly impacting share price depending on future debt issuances and investor demand.

Additional Investor Considerations

• No Offer or Invitation: The announcement is for informational purposes only and does not constitute an offer, invitation, or solicitation to acquire, purchase, or subscribe for securities.
• Regulatory Notice: Securities issued under this programme will not be registered under the U.S. Securities Act of 1933 or the securities laws of other jurisdictions, and may not be offered or sold in the United States except in specific exempt transactions.
• Market Risks: As always, the value of CLCT units and any income derived may fluctuate. Units are not obligations of or guaranteed by CapitaLand China Trust Management Limited or any of its affiliates. Investments are subject to risks, including possible loss of principal.
• Liquidity Risk: The listing of units on SGX-ST does not ensure a liquid market for the units. Investors can only trade units through the SGX-ST, and the manager does not redeem or purchase units while listed.

Conclusion

The update to CLCT’s multicurrency debt issuance programme marks a significant step in its financial strategy, enhancing its capacity to tap international markets and refine the terms of future debt instruments. Investors should closely monitor subsequent issuances and programme developments for potential impacts on share price and the trust’s capital structure.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or an offer to buy or sell any securities. Investors are advised to conduct their own due diligence and consult with professional advisors before making investment decisions. The value of investments may fall as well as rise. Past performance is not indicative of future results.

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