Mallesons Stephen Jaques is acting for Goldman Sachs, the Sole Lead Manager and Bookrunner to Queensland-based FKP Property Group’s (FKP) $125 million convertible bonds issue.
The proceeds of the issue will be used to repay $100 million of FKP’s Retirement Syndicate Facility, which was due to mature in March. The balance of the issue will be used for general corporate purposes.
The bonds were offered to institutional investors. They have a five year term and can be converted into FKP stapled securities. The bonds are to be listed on the Singapore stock exchange.
John Sullivan and Rowan Russell are the lead Mallesons partners on the deal, with the team also including solicitors Avi Naidu and Alissa Bott.
The issue is one of a number of recent convertible bond transactions, which indicates an upswing in the space after a dormant period following the GFC.
The issue is one of the first to use the recently restored ASIC relief alleviating the need for a compliance prospectus for the bonds.
Mr Sullivan said “Convertible bonds can provide useful funding diversification for issuers. It has been pleasing to see issuers using the restored ASIC relief, which we were actively involved in seeking. Increased issuance is also consistent with the government’s reforms to stimulate corporate bond markets generally.”
Mallesons has advised lead managers on a series of Singapore convertible bond transactions, including issues by Western Areas, Commonwealth Property Office Fund, Aquarius Platinum, CFS Retail Property Fund, Macquarie Communications, Alumina, ING Industrial Fund, Centennial Coal, Transpacific, St Barbara Mines and Consolidated Minerals.
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