CICT raises $600m in oversubscribed private placement

The placement originally targeted $500m.

CapitaLand Integrated Commercial Trust (CICT) has raised $600m through a private placement that was approximately 4.9 times oversubscribed.

Strong demand came from both new and existing institutional and accredited investors.

The placement originally targeted $500m, but due to strong demand, the manager exercised an upsize option of $100m.

A total of 284,361,000 new units will be issued at $2.11 per unit.

The price reflects a 2.48% discount to the adjusted VWAP of $2.1637 and a 5.53% discount to the VWAP of $2.2334.

Proceeds from the placement will be used primarily to finance CICT’s acquisition of the remaining 55% interest in the office and retail components of CapitaSpring, located at 86 and 88 Market Street, Singapore, amounting to approximately $466.5m or 77.7% of the total proceeds.

About $125.9m, or 21%, will be used for debt repayment, refinancing, and capital expenditure, including asset enhancement initiatives.

The remaining $7.6m, or 1.3%, will cover transaction-related expenses such as professional fees.

If the CapitaSpring acquisition does not proceed, funds may be used for other purposes, including future acquisitions or debt repayment.

Until deployed, proceeds may be held with banks or used to reduce borrowings.

The manager will provide updates on the use of funds via SGXNet and will disclose any material deviations.