SGX poised for first fund-raising since IPO in 2000 with $1.5 bil debt programme

Chan Chao Peh

SINGAPORE (Oct 17): Singapore Exchange has established its $1.5 billion multi-currency debt issuance programme, giving it additional funding for potential investments and for general working capitals.

If and when SGX draws from this programme, it will be the exchange’s first fund-raising since its IPO in 2000.

The exchange, which is debt-free, holds a cash balance of some $666.7 million as at June 30, down from $831.6 million as at June 30 2018.

Under the programme, which is arranged by DBS Bank and Standard Chartered Bank, SGX may issue medium term notes or perpetual securities denominated in any currency, amount and tenor.

The securities can then be sold to both institutional and retail investors, and be traded on SGX itself.

“The establishment of the multi-currency debt issuance programme is in line with SGX’s priorities to grow our asset classes across geographies and to invest strategically as our business expands,” says SGX CEO Loh Boon Chye.

“The programme will provide us with the flexibility to capture growth opportunities quickly when the need arises, while allowing us to actively manage our balance sheet,” he adds.

SGX closed on Thursday at $8.22, down 0.48% for the day. It will report its 1QFY2020 results this coming Thursday.