SG Issuer Announces Adjustments to Keppel Ltd. Certificates Following Dividend Declaration

Key Highlights

• Keppel Ltd. declares both an ordinary and a special dividend, including a dividend in-specie of Keppel REIT units.
• SG Issuer to adjust terms for four leveraged Certificates linked to Keppel Ltd. shares.
• Adjustments take effect on 27 April 2026, the ex-dividend date for Keppel Ltd.
• Issuance of Keppel REIT units as part of the dividend is a key event that could impact share value and derivatives pricing.

Detailed Information for Investors

SG Issuer has issued an official announcement detailing proposed adjustments to the terms and conditions of four European Style Cash Settled Certificates linked to the ordinary shares of Keppel Ltd. These Certificates, both long and short, offer daily leverage of 5x and -5x, with expiry dates in July 2027 and July 2028. The affected certificates are:

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

Dividend Announcement by Keppel Ltd.

Keppel Ltd. has declared a tax-exempted ordinary cash dividend of S\$0.19 per share and a special dividend comprising S\$0.02 per share in cash and a dividend in-specie of one Keppel REIT (KREIT) unit for every nine Keppel shares held. This multi-component dividend will be distributed subject to the conditions previously set by the company. The ex-dividend date, when Keppel shares will begin trading without entitlement to the dividend, is set for 27 April 2026.

Adjustments to Certificates

In light of this dividend announcement, SG Issuer will adjust the terms of the above Certificates to reflect the distribution. The adjustment uses the following formula for the “Rfactor”:

 Rfactort = (S - CD - OD) / S 

• S: Closing price of a Keppel Share on the SGX on 24 April 2026 (the last trading day before ex-dividend).
• CD: The Special Dividend per share (S\$0.02) plus the value of the in-specie KREIT unit per Keppel share (calculated as the closing price of a KREIT unit on 24 April 2026 divided by 9).
• OD: The Ordinary Dividend per share (S\$0.19).

The calculated Rfactor_t will be rounded to the nearest six decimal places. If the dividends are not implemented by Keppel Ltd., no adjustment will be made.

Implications for Shareholders and Investors

This announcement is highly significant for shareholders and investors in Keppel Ltd. and its related leveraged Certificates:

• Potential Share Price Impact: The distribution of both a sizable ordinary dividend and a special dividend (including an in-specie distribution of KREIT units) is likely to affect Keppel’s share price on and after the ex-dividend date. The value of the KREIT units distributed will be directly reflected by the market price of KREIT on 24 April 2026, and could result in a notable adjustment to Keppel’s share price when trading ex-dividend.
• Derivative Pricing Adjustments: Investors holding the affected leveraged Certificates should note that their terms will be adjusted on 27 April 2026. The Rfactor calculation ensures that the payout structure remains fair and reflects the new reduced value of Keppel shares post-dividend. This is particularly important for investors using the Certificates for leveraged exposure, as the adjustment will affect daily returns and risk profiles.
• Strategic Implications: The in-specie distribution of Keppel REIT units introduces a unique dimension for investors, as the value of the special dividend will depend on KREIT’s trading price on the relevant date. Investors may want to monitor both Keppel and KREIT share prices closely in the lead-up to the ex-dividend date for potential trading opportunities or hedging considerations.
• Action Required: All adjustments will take effect automatically on 27 April 2026. No action is required from Certificate holders unless the dividends are not implemented, in which case no adjustment will occur.

Conclusion

The upcoming dividends and the corresponding adjustments to Keppel-linked Certificates represent a noteworthy event for both equity and derivative investors. The inclusion of a dividend in-specie further differentiates this event, making it one to watch for potential share price and Certificate value movements around the ex-dividend date. Investors should remain vigilant and consider the implications for their portfolios.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult with a professional advisor before making investment decisions. The information is based on announcements available as of 10 April 2026 and may be subject to change.

View Keppel 5xShortSG280725 Historical chart here