Keppel Infrastructure Trust (formerly known as Cityspring Trust)

[AQ.]

KIT's asset seems to have very short contract terms.

Merlimau until 2030 with 10y extension option
Basslink until 2031 with 15y option
DC One until 2036 with 8y option
The 4 water and waste plants until 2024/25/27/34

Does anyone knows what happens when the contract ends for such businesses?
What can KIT do with the asset?
In the event of an extension, will there be any payment involved? If so, who pays who ? Government (as the customer)pays KIT or the other way round since Government is issuing a license to operate?

   For the water and waste plants with no extensions, once the concession periods end, the cashflow streams also end. 

   So far, it seems likely the Ulu Pandan plant (which is close to the Ulu Pandan reclamation plant) will cease and land taken back for redevelopment.

   https://www.businesstimes.com.sg/governm...e-projects

   "The first phase of DTSS, comprising the North and Spur tunnels and the Changi plant, cost S$3.4 billion and was completed in 2008.
   The second phase - which includes deep tunnels extending from the downtown area to the western part of Singapore, the Tuas Water Reclamation Plant (TWRP) and an integrated NEWater factory -     will cost some S$6.5 billion. It will be completed by 2025.

   After that, existing water reclamation plants at Ulu Pandan and Jurong, plus the intermediate pumping stations, will be phased out and the land freed for other uses.
   The entire DTSS, one of Singapore's most ambitious water projects that is expected to serve the country's used-water needs till the next century, will free up about 150           hectares of land that is now occupied by six water reclamation plants and over 130 pumping stations."

[¯|_(ツ)_/¯]

KIT@56
Keppel to acquire Hyflux SingSpring
https://links.sgx.com/FileOpen/20210707_...eID=673927


Stay home and stay safe, everyone.

[Shrivathsa]

Equity Fund Raising proposed at around a price of SGD 0.471. Expected DPU after acquisition is SGD 0.0441, or, am I misunderstanding something in the EFR document, the Trust has sent. Seems like a fairly high yield of 9.36% if the projections hold true. They did do one round of rights issue last year as well. This time it is to acquire a bus service in Australia. Last time was some wind farm or something.