BURSA ANNOUNCEMENTS

Date : 15 March 2012

OTHERS SUNWAY REAL ESTATE INVESTMENT TRUST (“SUNREIT”) - PROPOSED ISSUE OF, OFFER FOR SUBSCRIPTION OR PURCHASE OF OR INVITATION TO SUBSCRIBE FOR OR PURCHASE OF COMMERCIAL PAPERS PURSUANT TO A COMMERCIAL PAPER ISSUANCE PROGRAMME OF UP TO RM1.6 BILLION IN NOMINAL VALUE (“CP PROGRAMME”) [“PROPOSAL”]

SUNWAY REAL ESTATE INVESTMENT TRUST

TypeAnnouncement
SubjectOTHERS
DescriptionSUNWAY REAL ESTATE INVESTMENT TRUST (“SUNREIT”)
- PROPOSED ISSUE OF, OFFER FOR SUBSCRIPTION OR PURCHASE OF OR INVITATION TO SUBSCRIBE FOR OR PURCHASE OF COMMERCIAL PAPERS PURSUANT TO A COMMERCIAL PAPER ISSUANCE PROGRAMME OF UP TO RM1.6 BILLION IN NOMINAL VALUE (“CP PROGRAMME”) [“PROPOSAL”]
1. INTRODUCTION
      We refer to our announcement dated 24 February 2012 in respect of the Proposal. The Board of Directors of Sunway REIT Management Sdn Bhd, the manager of SUNREIT is pleased to announce that Public Investment Bank Berhad, being the Principal Adviser and Lead Arranger for the Proposal, has on 15 March 2012, received the approval from the Securities Commission Malaysia (“SC”) vide its letter dated 14 March 2012 in respect of the application for the Proposal, which was submitted on behalf of SunREIT Capital Berhad (formerly known as Noble Pioneer Sdn Bhd) (“Issuer”) on 24 February 2012.

      The Issuer is a special purpose vehicle whose shares are held by OSK Trustees Berhad as trustee for SUNREIT (“Trustee”) to undertake the Proposal.

2. DETAILS OF THE CP PROGRAMME
      The CP Programme has a tenure of up to seven (7) years (“Tenure”) commencing from the date of first issuance (which shall be within two (2) years from the date of approval by the SC).

      The respective limit of the CP Programme shall be as follows:

      (a) RM1.25 billion in nominal value for the first three (3) years (commencing on the date of first issuance of the commercial paper(s) to be issued from time to time under the CP Programme (“CP(s)”); and

      (b) RM1.6 billion in nominal value thereafter until expiry of the CP Programme.

      The aggregate outstanding nominal value of the CPs issued under the CP Programme shall not exceed the applicable programme limit at any one time.

      The CPs may be issued for various tenures ranging from one (1), two (2), three (3), six (6), nine (9) or twelve (12) months, provided always that the CPs shall mature prior to the expiry of the Tenure.


      The CPs will be issued at a discount to face value and the issue price shall be determined closer to the date of each issuance. Any amount of CPs that has been issued may be reissued or rolled over within the limit and the Tenure.

      The CP Programme has been accorded a rating of P1(s) by RAM Rating Services Berhad (“RAM Ratings”).

      The CPs may be issued via competitive tender, direct or private placement, bought deal basis or book running basis, all without prospectus at the option of the Issuer.

      The CPs are to be underwritten by Public Bank Berhad (“PBB”) up to RM1.6 billion in nominal value for CPs rated P1, P2 and P3 (or their respective equivalent) by RAM Ratings. At all times, the amount underwritten will be equal to the programme limit of the CP Programme (being RM1.25 billion for the first three (3) years and RM1.6 billion thereafter). PBB reserves the right to sell down all or part of its underwriting commitment.

3. UTILISATION OF THE PROCEEDS
      The proceeds raised from the CP Programme shall be utilised by the Issuer for the purpose of advancing to SUNREIT where the Trustee, shall utilise such proceeds firstly to repay the existing borrowings granted by PBB, secondly as working capital requirements of SUNREIT and to defray expenses incurred in relation to the CP Programme and thirdly for financing (including repayment of cash utilised by SUNREIT to part finance) the investment activities (including capital expenditure and the related acquisition and financing expenses) of SUNREIT and/or refinancing of existing/future borrowings undertaken by SUNREIT for its investment activities (including capital expenditure and the related acquisition and financing expenses) as well as to refinance maturing CPs on their respective maturity dates subsequent to the first issuance of the CPs and to fund the Trustee’s Reimbursement Account as required under the SC’s Trust Deed Guidelines.

This announcement is dated 15 March 2012.

Announcement Info

Company NameSUNWAY REAL ESTATE INVESTMENT TRUST  
Stock Name SUNREIT    
Date Announced15 Mar 2012  
CategoryGeneral Announcement
Reference NoSR-120315-57692

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