CSI Properties Announces HK$2 Billion Fundraising Plan to Strengthen Balance Sheet
- Editor
- Feb 2
- 2 min read
What's Happening: CSI Properties Limited is raising approximately HK$2 billion through a rights issue and senior unsecured note to strengthen its balance sheet amid current market challenges. The fundraising includes HK$1.5 billion in new equity capital and a HK$500 million senior unsecured note from new investor Gaw Capital.
The Key Moves:
Gaw Capital is providing up to HK$758 million in new equity capital and a HK$500 million senior unsecured note, becoming a strategic investor with a 4-year lock-up commitment.
CSI is launching a HK$9 billion asset disposal program over 4 years to narrow its NAV discount and unlock shareholder value.
Controlling shareholder Chairman Chung is underwriting HK$400 million of the rights issue, demonstrating commitment to the company's future.
By The Numbers :
Total fundraising of approximately HK$2 billion, including HK$1.5 billion from rights issue and HK$500 million senior unsecured note.
HK$9 billion asset disposal program planned over next 4 years.
Gaw Capital currently manages over US$35.8 billion in assets under management.
Key Quotes:
"We are excited to welcome Gaw Capital as a true business partner from the angle of their global expertise and looking at things from an institutional investor perspective," said CSI Chairman Chung.
Kenneth Gaw, President of Gaw Capital Partners, stated: "CSI Properties hold high quality portfolio with a majority of quality residential and commercial assets in Hong Kong. The synergies we create will sharpen our competitive edges in asset management."
"I am firmly committed to remain as the major controlling shareholder and this fundraising exercise will not result in any change of control," affirmed CSI Chairman Chung.
The Bottom Line: CSI Properties' HK$2 billion fundraising plan, led by its controlling shareholder and new strategic investor Gaw Capital, aims to strengthen the company's balance sheet and position it for future growth. The introduction of Gaw Capital as an institutional investor, combined with a significant asset disposal program, demonstrates CSI's commitment to navigating current market challenges and unlocking shareholder value.
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