Allen & Gledhill advised OUE Limited (“OUE”) on the concurrent issue of S$154.7 million 1.50 per cent. convertible bonds due 2023 and S$150 million 3.00 per cent. exchangeable bonds due 2023.
The convertible bonds are convertible into ordinary shares of OUE and the exchangeable bonds are exchangeable into stapled securities of OUE Hospitality Trust.
This is the first concurrent equity-linked issuance by a Singapore company, and was reported as being Asia’s first concurrent equity-linked issuance in 11 years by Finance Asia.
This is also the first issue of exchangeable bonds by a Singapore company since 2011 and is the first issue of exchangeable bonds by a Singapore-listed company. The exchangeable bonds also have the novel feature of being exchangeable into stapled securities, as opposed to ordinary shares.
This is also the first issue of convertible bonds by a Singapore-listed company where the terms and conditions allow the issuer the flexibility to satisfy its obligation to deliver conversion shares either through the issue of new shares and/or the delivery of treasury shares.
Advising OUE as to Singapore law were Allen & Gledhill Partners Tan Tze Gay, Bernie Lee and Wu Zhaoqi.
Advising OUE on Singapore tax issues was Allen & Gledhill Partner Sunit Chhabra.