CapitaLand India Trust Announces Successful Close of S\$150 Million Private Placement

Key Highlights for Investors

• Private Placement Closed: CapitaLand India Trust (CLINT) has successfully closed its private placement, issuing 124,173,000 new units at S\$1.208 per unit.
• Oversubscription: The placement was approximately 2.6 times covered, indicating strong demand from institutional, accredited, and other investors.
• Pricing Details: The issue price represents a discount of approximately 4.9% to the volume weighted average price (VWAP) of S\$1.2701 per unit, and about 3.8% to the adjusted VWAP of S\$1.2557 per unit (after factoring in estimated advanced distribution of 1.44 Singapore cents per unit).
• Gross Proceeds: The trust raised approximately S\$150 million from the private placement.
• Use of Proceeds:
  • S\$100 million (66.7%) will be used to part fund the development and construction of Building 1, Ebisu, Bangalore, with an annual coupon rate of at least 11.5% payable to CLINT. Remaining funding commitment for this project is about INR 8.6 billion (S\$123 million).
  • S\$47.4 million (31.6%) will be used for the ongoing development of ‘The Beacon’ (MAIA) at Nagawara, Outer Ring Road, Bangalore, also with at least 11.5% annual coupon. Remaining funding commitment for MAIA is INR 10.7 billion (S\$152 million).
  • S\$2.6 million (1.7%) allocated for estimated fees and expenses related to the private placement.
• Contingency Plan: Should the development and construction of Building 1 of Ebisu or MAIA fail to materialise, proceeds may be allocated to other pipeline projects or used for debt repayment, at the Trustee-Manager’s discretion.
• Listing Timeline: Trading of the new units on Singapore Exchange (SGX-ST) is expected to commence at 9:00 a.m. on 5 March 2026, subject to official approval.
• Regulatory Information: The new units are classified as prescribed capital markets products and Excluded Investment Products under Singapore regulations.

Important Information for Shareholders

• Price Sensitivity: The discount offered on the new units and the strong oversubscription indicate robust investor confidence but may temporarily affect the unit price due to dilution.
• Use of Funds: The proceeds are earmarked for high-yield property development projects in Bangalore, which are significant for the trust’s future income and asset growth. If these projects do not proceed as planned, funds may be redirected, which could impact future distributions and growth prospects.
• Yield Opportunity: Both projects offer an attractive annual coupon rate of at least 11.5%, potentially enhancing future returns for unitholders.
• Liquidity Reminder: Units are only tradable on SGX-ST; there is no redemption option for unitholders outside of market transactions.
• Risk Factors: The announcement contains forward-looking statements subject to risks such as economic conditions, interest rate trends, competition, and government policy changes. Investors should note the possibility of loss and market volatility.

Additional Details

• Project Details:
  • Building 1, Ebisu: Office building with approximately 1.2 million square feet, located on Outer Ring Road, Bangalore.
  • MAIA (‘The Beacon’): Office building with approximately 1.1 million square feet, also on Outer Ring Road, Bangalore.
• Management and Underwriters: The placement was managed by Citigroup Global Markets Singapore Pte. Ltd., DBS Bank Ltd., Goldman Sachs (Singapore) Pte., and Jefferies Singapore Limited.
• Periodic Updates: The Trustee-Manager will announce material utilisation of proceeds via SGXNET, ensuring transparency for investors.
• Regulatory Review: The announcement is not reviewed by the Monetary Authority of Singapore.

Potential Impact on Share Price

The successful oversubscription and pricing of the private placement, alongside the targeted deployment of proceeds into high-yield property projects, are likely to be price sensitive. Investors may see near-term volatility due to dilution, but the longer-term income prospects and asset growth could support share value. Any delays or changes in project execution could negatively impact future distributions and unit price.

The strong institutional demand and clear project pipeline are positive signals for market confidence in CLINT’s growth strategy.

Disclaimer

This article is for informational purposes only and does not constitute an offer or solicitation to invest in CapitaLand India Trust. The information herein is based on company announcements and may contain forward-looking statements which are subject to risks and uncertainties. Investors should conduct their own due diligence and consider their risk tolerance before making investment decisions. Past performance is not indicative of future results. Units are not guaranteed by the Trustee-Manager or its affiliates. Trading on SGX-ST does not guarantee liquidity.

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