Published June 18, 2009

Yanlord aiming to raise at least $491m: report

Proceeds to come from a sale of primary shares and 5-year convertible bonds

By LYNETTE KHOO

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YANLORD Land Group is looking to raise at least $491 million through the sale of primary shares and convertible bonds, according to sources quoted by Reuters.

JP Morgan and RBS are said to be handling the deal, which could be upsized if demand is strong.

The Singapore-listed China-based property group halted trading of its shares yesterday afternoon pending an announcement.

Yanlord is said to be offering 100 million primary shares at between $2.08 and $2.16 a share. It will also offer five-year convertible bonds worth $275 million with a coupon range of 4.85 to 5.85 per cent, the source was quoted as saying. There will be a put option at the end of the third year.

JP Morgan and RBS are said to be handling the deal, which could be upsized if demand is strong.

Yanlord is part of the Singapore consortium, which includes Sembcorp Industrial Parks and Surbana Land, that is developing the Sino-Singapore Nanjing Eco High-Tech Island in Nanjing, China. The development will be completed in three phases and will include about six million square metres of gross floor area in prime commercial, industrial and residential complexes in Jiangxinzhou, 6.5 km from Nanjing's city centre. It is Nanjing's largest foreign collaborative development.

Yanlord has a 40 per cent shareholding in the consortium, Singapore Intelligent Eco Island Development Pte Ltd.

The company had bucked the earnings trend in the first quarter ended March 31, with net profit soaring to $24.27 million from $9.31 million a year ago - thanks to higher selling prices for the company's high-end projects.

Gross profit margin rose to 64.1 per cent from 37.5 per cent a year ago. The company said that it maintained a strong financial position as cash and bank balances rose 54.2 per cent to $579.6 million.

The Yanlord counter rose to a 52-week high of $2.37 on June 2. Its last traded price before the trading halt yesterday was $2.31, which represents a 158 per cent jump for the year to date.