Fullerton Health Sees High Demand for US$175 Million Perpetual Bond Offering
Singapore, 31 March 2017: Fullerton Health, a leading provider of corporate healthcare solutions across Asia Pacific, today successfully priced the issue of a perpetual bond with a total value of US$175 million. The issue was three times oversubscribed.
The debt issued is senior, unsecured, direct, unconditional and unsubordinated perpetual capital securities, with a distribution rate of 7 per cent per annum up to the first call date of 6 April 2020. Thereafter, the distribution rate resets every three years to a rate equal to the prevailing three-year United States Treasury rate, plus initial spread, plus 5 per cent.
The unrated bonds will be issued under Regulation S in the denomination of US$200,000. The final allocations were made up of 65% institutional investors and 35% private banks, with a total of 82 investors.
Fullerton Health will use the net proceeds of the issue to fund acquisitions for further vertical integration across the healthcare value chain, as well as for expansion into new markets. Specifically, Fullerton Health plans to fund acquisitions in the specialty services segment in Singapore, and in the enterprise healthcare services segment in Australia.
Credit Suisse was the Sole Lead Manager for the issue.
Dr Ramesh Rajentheran, Group Chief Financial Officer and Chief Operating Officer of Fullerton Health said, “We are delighted with the successful perpetual bond issue, and are encouraged by the strong demand we have seen. It is clear that our business model and track record of growth represent an attractive proposition for international investors.
The proceeds from this issue will strengthen our ability to act on significant acquisition opportunities across Asia Pacific, which will ensure our continued dynamic growth and help build our presence across the region. This fundraising, in addition to our strong cash generation and growing international customer base, positions us as a leading player in this industry. It will allow us to bring our promise of high quality affordable healthcare to an even greater number of patients across the region.”
Sherwin Loh, Non-Executive Director of Fullerton Health and Managing Director of SIN Capital commented,”As the controlling shareholder of Fullerton Health, SIN Capital is committed to supporting the management team and the company in its capital markets efforts, in this case, the first US dollar perpetual bond issue by a healthcare company in Asia. We are delighted that Fullerton Health now has in place the funding that will allow the company to deliver long term value creation for shareholders.”
Further Enquiries:
Brunswick Group
Will Carnwath +65 6426 8188
CJ Lin
About Fullerton Health
Fullerton Health is a leading provider of corporate healthcare solutions across Asia Pacific. Founded in Singapore in 2011, today we own more than 225 medical centres across 6 countries and have a network of more than 8,000 medical providers around the world. We harness these resources to provide you healthcare that is affordable, yet accessible.
More than 25,000 corporations, from multinational companies to small medium enterprises and government organisations, have chosen to use our services. Our integrated healthcare model and our scale mean we can offer one-stop, cost-effective solutions to our corporate and insurer clients, and better care to our patients.
What’s more, we are strong believers in innovation, and in staying ahead of technological developments. This means we have our own advanced technology system that powers the Fullerton network, and enables this network to grow further. This gives us a continuing ability to improve business performance and efficiency, which in turn creates cost-savings for our customers.
With 50 years of experience listening and caring, and an experienced management team that brings the best from different industries, we are now better poised to transform healthcare in Asia, making it affordable and accessible to those we serve.