Stock News: Keppel Land launched 250 mln sgd of bond!

Keppel Land Ltd has launched for sale 250 mln sgd worth of seven-year convertible bonds, with an option to increase the size to 300 mln sgd. The bonds, which carry an interest rate of 2.50 pct per annum, can be converted into new shares of Keppel Land at 6.55 sgd per share, a 40 pct premium over yesterday's closing price of 4.68 sgd. Upon full conversion, Keppel Land will issue 38.17 mln new shares, equivalent to 5.33 pct of the company's existing issued and paid-up capital. Net proceeds from the bond issue of 245 mln sgd will refinance the property developer's existing debt and for general working capital purposes, it said. "The transaction was very well received by the market which shows the confidence investors have in the management of Keppel Land. The deal was priced at the tight end of the range despite volatile market conditions," said Keith Magnus, head of investment banking for Deutsche Bank, the issue manager.