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Singapore-listed City Developments has launched a multicurrency perpetual securities programme worth SGD 2 billion (approximately USD 1.57 billion) to strengthen its capital structure and support funding requirements. Announced on April 9, the programme allows the company to issue securities in multiple tranches and currencies, subject to regulatory approvals. Proceeds will be utilised for general corporate purposes, including working capital needs and refinancing of existing borrowings. United Overseas Bank has been appointed as arranger and dealer for the programme, while the company has applied for listing of the securities on the Singapore Exchange. The move reflects ongoing efforts by real estate developers to access flexible capital instruments amid evolving funding requirements.
City Developments has launched a multicurrency perpetual securities issuance programme worth SGD 2 billion (approximately USD 1.57 billion) in the past week, aimed at strengthening its funding framework and supporting corporate financing requirements. Advertisement
The Singapore-listed real estate developer stated that the programme will enable it to issue perpetual securities in series or tranches, denominated in Singapore dollars or other currencies, subject to obtaining the necessary regulatory approvals. The structure provides flexibility in terms of timing, currency and issuance size, allowing the company to respond to market conditions.
Proceeds from the issuance are intended to be used for general corporate purposes, including working capital requirements and funding needs across the company and its subsidiaries. The firm also indicated that part of the funds may be utilised for refinancing existing borrowings, suggesting a focus on optimising its capital structure.
Perpetual securities are fixed-income instruments that do not carry a fixed maturity date and typically offer either fixed or floating distribution rates. These instruments are often used by companies to raise long-term capital without immediate repayment obligations, while maintaining flexibility in balance sheet management.
City Developments has appointed United Overseas Bank as the arranger and dealer for the programme. The bank will be responsible for structuring and facilitating the issuance of securities under the programme.
The company has also applied to the Singapore Exchange for the listing and quotation of the securities, which would enable trading in the secondary market once issued. Listing on the exchange is expected to enhance liquidity and investor participation.
The launch of the programme comes at a time when real estate developers are exploring diversified funding sources to support operations and manage debt obligations. Perpetual securities have gained traction as an alternative capital-raising tool, particularly in markets with developed debt capital frameworks.
City Developments is among the larger property developers in Singapore, with a diversified portfolio spanning residential, commercial and hospitality assets across multiple geographies. The introduction of a multicurrency issuance platform is aligned with broader strategies adopted by developers to maintain financial flexibility and access global capital markets.
The programme also follows similar capital-raising initiatives by other Singapore-listed firms, indicating increased activity in the debt markets. Developers and infrastructure companies have been leveraging such instruments to manage funding requirements while balancing growth and financial stability.
The initiative underscores the continued reliance on structured financial instruments in the real estate sector, where capital-intensive operations necessitate access to varied and flexible funding mechanisms.
Source -Reuters
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