Keppel Corp has tapped the international bond markets to raise up to SGD 250m ($177m).
The Singapore-listed shipyard group said in a regulatory filing that the five-year notes would carry a coupon of 2.25% per annum, payable semi-annually in arrears.
DBS Bank — Singapore’s largest bank — has been appointed sole lead manager of the bond offering.
The notes are expected to be issued on or about 20 April 2020 and are expected to be listed on the Singapore Exchange.
Net proceeds will be used for general corporate or working capital purposes, including refinancing of existing loans.
The bonds will be issued under Keppel’s existing $5bn multi-currency medium term note programme.
Shares in Keppel Corp are down nearly 18% since the start of the coronavirus outbreak. However, they were up SGD 0.07 in early trading on Tuesday.
The group's yards have remained open during Singapore's coronavirus "circuit-breaker" as they, and much of the marine industry, were considered an 'essential service'.
However, Keppel Shipyard emerged as a new cluster for virus cases in early April, according to the Ministry of Health.
