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halted due to issuance of convertible bonds

TERMS AND FINANCIAL EFFECTS OF NEW ISSUANCE OF CONVERTIBLE BONDS DUE 2023

Issue Size : S$750,000,000 in principal amount of Convertible Bonds
Interest : The Convertible Bonds will bear interest at the rate of 1.95 per cent. per annum, payable semi-annually in arrear

Yield to Maturity : 1.95 per cent. per annum, calculated on a semi-annual basis

Initial Conversion Price : S$4.212 for each new Share

Conversion Period : Convertible at the option of the holder, at any time from 27 November 2013 to 7 October 2023

http://infopub.sgx.com/FileOpen/CL-Morga...nouncement& FileID=256986

SINGAPORE — CapitaLand, South-east Asia’s largest listed developer, will buy back some of its existing convertible bonds with proceeds from a new issue, taking advantage of low interest rates.

CapitaLand plans to issue S$600 million in principal amount of the bonds and may increase the size by up to S$100 million if an option is exercised, while it will also redeem outstanding convertible bonds due in 2016 and 2018, according to regulatory filings with the Singapore Exchange yesterday. CapitaLand is making the offers “to reduce the principal amount of the outstanding indebtedness and ongoing debt service obligations”.

The proposed bonds, convertible into new ordinary shares, will be placed with institutional and accredited investors. The terms for convertibility will be confirmed after pricing and completion of book-building, it said.

The move came after the US Federal Reserve defied investor expectations on Wednesday by postponing the start of the wind-down of its massive monetary stimulus, saying it wanted to wait for more evidence of solid economic growth. AGENCIES

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C land down 2.5% today, why are investors reacting negatively to the CB?

I thought its quite a good move

exactly.. i also thought it was a gd move on capland's part.

http://infopub.sgx.com/FileOpen/ART_SGFG...eID=260271

ENTRY INTO STRATA SALE FOR THE DIVESTMENT OF 81 UNITS IN SOMERSET GRAND FORTUNE GARDEN


(Not vested)

CapitaLand's performance in China, is one of the my gauges of China property "bubble". So far so good, the "bubble" seems not exist yet from CapitaLand's perspective...

CapitaLand to accelerate residential developments in China

HONG KONG – Southeast Asia’s biggest builder CapitaLand aims to speed up construction of apartments in China to boost returns and take advantage of the country’s growing urbanisation, the Bloomberg news agency reported.

“For residential projects, the pace of our development is not fast enough,” Mr Jason Leow, chief executive officer of CapitaLand’s China unit, said at a briefing in the southern Chinese city of Shenzhen.

Singapore-based CapitaLand has mixed-use projects under its Raffles City brand name in eight cities and also owns The Ascott, the country’s biggest serviced apartment operator.

The company has sold almost 2,400 homes in the nine months through September, compared with about 2,000 homes in the same period a year earlier, Mr Leow said. More than 90 per cent of the company’s residential projects in China are targeted at first-time buyers and the mass market, he said.

CapitaLand’s operations in China have had little impact from tighter lending by banks because the company is “in a very comfortable position financially,” group Chief Executive Officer Lim Ming Yan said at the briefing.
...
http://www.todayonline.com/business/capi...ents-china

The company showed its confidence on the company's bet in China. Will it provide support to the company's share price...

(not vested, but monitoring)

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BUYBACK OF 2 MILLION SHARES IN CAPITALAND LIMITED

CapitaLand Limited ("CapitaLand") wishes to announce that it has bought back
an aggregate of 2 million shares of CapitaLand ("Shares") in an on-market share
buyback exercise ("Buyback") on the Singapore Exchange Securities Trading
Limited on 6 December 2013 pursuant to the Share Buyback Mandate approved
by shareholders at the Extraordinary General Meeting of CapitaLand held on 26
April 2013. The Shares were bought back at the weighted average price of
S$3.0037 per Share. CapitaLand will hold the bought back Shares as treasury
shares.

At approximately 17% discount to CapitaLand’s Net Tangible Asset of S$3.63 as
at 30 September 2013, Management believes that the current CapitaLand share
price is attractive given the outlook for CapitaLand’s businesses in Singapore
and China. CapitaLand may consider further Buybacks subject to market
conditions.

Further 3554 lots been bought-back by the company, on top of the previous 2000 lots. All together bought back 5554 lots, 0.13% of total outstanding shares.

http://infopub.sgx.com/Apps?A=COW_Corpor...qhr-fQeSYI

The share buyback only manage to stem the drop in price. It is still drifting lower despite the buyback.
Key management will need to come in to buy the shares to support the stock. They will come in only when the price falls to an attractive level which they did a few years back.

If NTA is higher than the price they pay for the share buyback.....one takes consolation that the NTA will increase further and that one's stake in the company increases without having to fork out any more $$$......even though share price continues to fall.....


not vested