CapitaLand India Trust (SGX:CY6U) saw its stock price soar by 3.77% during Thursday's trading session, following the company's announcement of a significant bond issuance. The real estate investment trust's shares climbed on news of its successful placement of SG$100 million worth of subordinated perpetual securities.
According to a filing with the Singapore Exchange late Wednesday, CapitaLand India Trust issued the bonds with a 4.40% coupon rate. The securities were issued under the company's SG$1.50 billion multicurrency debt issuance program and were officially listed on the exchange on Thursday. This strategic financial move appears to have been well-received by investors, contributing to the notable stock price increase.
The successful bond issuance could potentially provide CapitaLand India Trust with additional capital for its operations and investments in the Indian real estate market. As a business trust focused on Indian properties, this fresh injection of funds may enable the company to pursue new opportunities or strengthen its existing portfolio, which could explain the positive market reaction. Investors seem to be viewing this development as a sign of the trust's financial strength and growth prospects in the competitive Indian real estate sector.
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