Mapletree Commercial Trust Preferential Offering of 71 New Units For Every 1000 Existing Units

I have previously wrote about Mapletree Commercial Trust’s acquisition of Mapletree Business City (Phase 2) which will be funded by a private placement of New Units to institutional and other investors; and / or a non-renounceable preferential offering of New Units to the existing unitholders of MCT on a pro rata basis.

The proposed acquisition was confirmed on the EGM that was held on 15th of October. On 16 October 2019, the Manager proposed to carry out an equity fund raising comprising an offering of 406,482,840 New Units to raise gross proceeds of no less than S$902.3 million by way of:

  • A private placement of 200,893,000 New Units at an issue price of between S$2.240 and S$2.280 per New Unit to raise gross proceeds of no less than S$450.0 million (the “Private Placement”); and
  • A pro-rata and non-renounceable preferential offering of 205,589,840 New Units on the basis of 71 New Units for every 1,000 existing units in MCT (“Existing Units”) to be held as at the Preferential Offering Books Closure Date to Entitled Unitholders at an issue price of between S$2.200 and S$2.240 per New Unit (fractions of a New Unit to be disregarded) to raise gross proceeds of no less than S$452.3 million (the “Preferential Offering”), (together, the “Equity Fund Raising”)

on 15th October 2019, the closing price of Mapletree Commercial Trust is S$2.34. Based on the issue price of S$2.24, this is around 4.27% discount to the current trading price. Of course there is a possibility the current share price may either go further up or down depending on how investors think about the preferential offering.

Here are some important dates for the Preferential Offering

Date/Time Event
5pm, Thursday, 24 October 2019 Closure of MCT’s Transfer Books and Register of Unitholders for the Cumulative Distribution
5pm, Friday, 8 November 2019 Unitholders and depository agents must have completed and returned Form A or Form B, as applicable, to the Unit Registrar, Boardroom Corporate & Advisory Services Pte. Ltd.
Thursday, 21 November 2019 Payment of the Cumulative Distribution

The Best Fixed Deposits of October 2019

As the interest rate for Singapore Savings Bonds continue to fall, it is probably time to consider the traditional fixed deposit promotions.

It is very difficult to decide which is the best fixed deposit promotion for the month of October as the minimum placement amount is different for each bank. The locked in period is also different. Below are the fixed deposit promotions that I have found in the month of October.

If you have S$20,000 to spare to lock in for 12 months, I will choose CIMB as it offers the best interest rate of 1.85% p.a.

If you can’t afford to wait 12 months and wanted something shorter in terms of locked in period, I will choose MayBank since if offers interest rate of 2.10% p.a. for 9 months.

Hong Leong Finance and Standard Chartered Bank are losing out in terms of interest rate but their rates are still considered attractive as compared to local banks such as UOB or OCBC. That is also why I seldom wrote about them since they never offered any attractive fixed deposit interest rates. Read More

November 2019 Singapore Savings Bonds is 1.74%

The effective interest rate for November 2019 Singapore Savings Bonds (GX19110F) fell to a new low which is 1.74% if you held it for 10 years. The interest rate is the lowest and the worst for the past 12 months. The minimum amount you can purchase for Singapore Savings Bonds is S$500. If you decide to hold and sell it for 1 year, the effective interest rate is 1.62%.

If Singapore Savings Bonds does not suite your taste bud, you can consider fixed deposits.

DBS Multiplier Account + Singapore Savings Bonds

If you hold a DBS Multiplier Account, you can perhaps try the hack I previously wrote about to achieve a higher interest rate payout. (Read more: Earn More Interest With DBS Multiplier Account + Singapore Savings Bonds).

Tracking Singapore Savings Bonds via Stocks Café

My favorite website, Stocks Café has introduced a new feature to allow adding of Singapore Savings Bonds into your portfolio. If you didn’t know, I signed up as a Friend of Stocks Café as my most favorite feature of Stocks Café is the automated tracking of dividends payout.

I have renewed my subscription with Stocks Café and this is the second year that I continue to use Stocks Café to track my dividends.

Tracking Singapore Savings Bonds via My Savings Bonds Portal

MAS has launched My Savings Bonds Portal where you can track your Singapore Savings Bonds purchases separately from your stock purchases. I have done up a simple guide here. (Read more: Guide to My Savings Bonds Portal)