Singapore-listed Keppel Infrastructure Trust (KIT) is raising S$450 million ($332 million) through a placement and a non-renounceable underwritten preferential offering of new units, according to its manager Keppel Infrastructure Fund Management.
In a disclosure to the Singapore Exchange, the fund manager said KIT unitholders approved the equity raising exercise at an extraordinary general meeting held on Feb 12. Credit Suisse, DBS Bank, HSBC, and UOB have been appointed as lead managers, bookrunners, and underwriters for the fundraising.
The equity fundraising has been proposed to secure funds for the partial repayment of a loan facility that KIT took for the A$770-million ($544 million) acquisition of water treatment chemicals distributor Ixom HoldCo.
KIT, through its wholly-owned indirect subsidiary IX Infrastructure, acquired 100 per cent of Ixom from certain funds managed by Blackstone and management shareholders in February this year.
Approximately $440.3 million, or 97.8 per cent of the gross proceeds from the equity fundraising, will be used to partially repay the loan, Keppel disclosed. The rest of the proceeds will go towards payment of fees and expenses.
Keppel Infrastructure Holdings, which holds 18.2 per cent or 702.3 million units in KIT, said it will subscribe to such number of placement units to keep its current unitholding.
The issue price of the placement units and the preferential offering units will be determined by joint lead managers, bookrunners, and underwriters following a book-building process.
The offer of placement units will be made to eligible institutional, accredited, and other investors. The price, according to Keppel, will not exceed a 10 per cent discount to the weighted average price of all trades done on the Singapore Exchange on March 12 and March 13.
Keppel Infrastructure’s portfolio includes the sole producer and retailer of piped town gas in Singapore, waste incineration and water desalination plants and a data centre.