CSI Properties plans to raise $2b in fundraising initiative

It will be used to enhance liquidity and repay maturing indebtedness.

CSI Properties announced a fundraising initiative to raise about $2b to enhance liquidity and for refinancing among others.  

The company could raise funds through a $1.49b underwritten rights issue at a 5.88% premium to the closing price or by issuing $500m in four-year senior unsecured notes with an interest rate of 8.22% per annum.

The group said it will utilise $800m to enhance its liquidity and financial stability, repay maturing indebtedness, and allocate the remaining for its working capital.

Meanwhile, the company proposes a share consolidation, whereby every two existing shares will be consolidated into one share.

The company also proposes granting holders the right to subscribe for consolidated shares at an initial warrant subscription price of $0.22.