Keppel Infrastructure Fund Management, the Trustee-Manager of Keppel Infrastructure Trust (KIT), has raised S$525 million through a private placement and preferential offering to finance the acquisition of a 51% stake in Keppel Merlimau Cogen plant.
The plant was the first independent power project to enter the Singapore electricity market since the New Energy Market of Singapore was implemented in January 2003.
To reward existing unitholders and enable them to participate in the future growth of the trust, KIT will conduct a non-renounceable preferential offering under which existing unitholders will be entitled to subscribe to 1 new unit for every 13 units owned as at 28 May 2015 at 5.00 pm at a preferential offering price of S$0.515 per unit, which is at a discount to the private placement price.
This equity deal is the largest in the year to date in Singapore and represents approximately 36% of KIT’s outstanding units before the equity fund raising exercise.
The private placement attracted strong institutional interest from new and existing investors, and was more than 2 times subscribed. Long only institutional and corporate investors were allocated approximately 75% of the private placement.
Mr Khor Un-Hun, CEO of Keppel Infrastructure Fund Management, the Trustee-Manager of KIT, stated:
“We are deeply encouraged by the strong investor interest in our equity fund raising. The increase in free float and institutional unitholder base will help KIT enhance the liquidity of its units and its ability to raise additional capital to finance future growth opportunities.”