SG Issuer Announces Adjustments to Keppel Certificates Following Dividend Declaration

Key Points from the Announcement

• Adjustment to Certificate Terms: SG Issuer has announced adjustments to the terms and conditions of four European Style Cash Settled Certificates linked to Keppel Ltd. shares. These include both long and short certificates, with daily leverage of +5x and -5x, expiring in 2027 and 2028.
• Reason for Adjustment: The changes are triggered by Keppel Ltd.’s declaration of a tax-exempted ordinary cash dividend of S\$0.19 per share and a special dividend consisting of S\$0.02 per share in cash and an in-specie dividend of one Keppel REIT unit for every nine Keppel shares.
• Ex-Dividend Date: Keppel shares will trade ex-dividend from 27 April 2026.
• Adjustment Formula: The terms of the certificates will be adjusted using a specific formula, reflecting the value of both cash dividends and the in-specie REIT dividend.
• Adjusted Share Price: The closing price of Keppel shares on 24 April 2026 (S\$11.55) will be adjusted to S\$11.241 for certificate calculations, accounting for the dividends.
• Rfactor Calculation: The Rfactor for adjustment is set at 0.973256, rounded to six decimal places.
• Effective Date: All adjustments will take effect on 27 April 2026.

Important Information for Shareholders and Investors

• Potential Price Impact: The declaration of both ordinary and special dividends, especially the in-specie distribution of Keppel REIT units, can impact Keppel Ltd.’s share price. This adjustment is essential to ensure that the leveraged certificates accurately reflect the post-dividend value of Keppel shares.
• Dividend In-Specie: Investors holding Keppel shares will receive one Keppel REIT unit for every nine shares held, in addition to the cash dividends. The value of this REIT unit is based on its closing price on 24 April 2026, divided by nine.
• Certificate Holder Implications: Investors holding the affected certificates (both long and short) should note that the underlying price for calculation is being reduced, which could affect leveraged returns.
• Timing: All changes are synchronized with the ex-dividend date, so trading strategies and valuations must be adjusted accordingly.
• Transparency: The adjustment formula and resulting values have been clearly specified, providing certainty for certificate holders and market participants.

Full List of Affected Certificates

• Keppel 5xLongSG270706 (expiring 6 July 2027)
• Keppel 5xLongSG280725 (expiring 25 July 2028)
• Keppel 5xShortSG270706 (expiring 6 July 2027)
• Keppel 5xShortSG280725 (expiring 25 July 2028)

Detailed Adjustment Formula

The adjustment to the terms of the certificates is calculated as follows:
Rfactor_t = (S – CD – OD) / S
Where:

• S: Closing price of Keppel shares on 24 April 2026 (S\$11.55)
• CD: Special Dividend per Keppel Share (S\$0.02) plus the value of the in-specie Keppel REIT unit (closing price divided by 9)
• OD: Ordinary Dividend per Keppel Share (S\$0.19)

The adjusted price for certificate calculations on 27 April 2026 will be S\$11.241.

Potential Market Impact

The declaration and distribution of both an ordinary and special dividend, including the in-specie REIT units, represent significant corporate actions. These are likely to influence Keppel Ltd.’s share price, particularly as the ex-dividend date approaches. Certificate holders must be aware of these adjustments as they could materially affect leveraged returns, both positively and negatively, depending on their positions.

Investors should monitor the REIT unit price closely, as it forms part of the in-specie dividend and will affect the overall value received.

Disclaimer: This article is based on official announcements and is intended for informational purposes only. It does not constitute investment advice. Investors should conduct their own research or consult financial advisors before taking any action based on this information. Share prices and certificate values can be affected by a variety of factors, including corporate actions and market conditions.

View Keppel 5xShortSG280725 Historical chart here