The manager of CapitaLand Integrated Commercial Trust(CICT) has increased its Euro Medium Term Note Programme limit to US$7 billion ($8.99 billion), and incorporated the option to issue Australian law medium term notes.
The Euro Medium Term Note Programme, established on March 29, 2010 and last updated on April 20, 2021, was initially capped at US$3 billion.
CICT says that the net proceeds will be used to refinance existing borrowings of the group, to finance the investments comprised in CICT, to on-lend to any trust, fund, partnership or entity in which CICT has an interest, to finance any asset enhancement works initiated in respect of CICT or such trust, fund, partnership or entity, and to finance the general corporate and working capital purposes in respect of the group.
The amended programme contains a condition where it is an event of default under the terms of the notes if the manager is removed as manager of CICT, and the replacement is not appointed in accordance with terms of the trust deed constituting CICT.
Should the condition be breached, it may trigger cross defaults under the other facilities, debt issues and borrowings of CICT and/or its subsidiaries. In such an event, the aggregate level of facilities, debt issues and borrowings of CICT and its subsidiaries which are outstanding and that may be affected is approximately S$8.328 billion as at the date of this announcement.
Units in CICT closed flat at $2.17 on June 18.
