SGX Treasury I, an indirect wholly-owned subsidiary of Singapore Exchange (SGX) says it intends to issue bonds that can be converted into shares in SGX.

The shares will be delivered upon the conversion of the bonds.

The bonds and due payment of all amounts payable by SGX Treasury I are unconditionally and irrevocably guaranteed by SGX.

It is proposed that the bonds be placed with institutional investors and other investors.

The size of the issue is said to be at 240 million euros ($386.8 million) in principal amount of bonds.

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Credit Suisse and Morgan Stanley Asia have been appointed as the joint global coordinators and bookrunners for the issue.

The terms of the bonds will be confirmed upon the pricing of the issue, which is followed by the completion of a book-building exercise by the joint global coordinators and bookrunners.

The pricing is expected to take place on Feb 1.

An application will be made to the Monetary Authority of Singapore (MAS) for the listing of the bonds and the shares on SGX-ST.

SGX says it intends to use the proceeds from the issue to refinance its existing debt and for general corporate purposes.

“We are pleased with the strong support from investors for our maiden convertible bond issue. The attractive terms underscore strong investor confidence in SGX’s credit fundamentals, solid business model and growth prospects. This issuance further diversifies our funding sources as we continue to identify strategic opportunities to drive growth across multiple asset classes," says Loh Boon Chye, CEO of SGX.

Shares in SGX closed 2 cents higher or 0.2% up at $9.92 on Feb 1.