SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly 0 million by selling 222 million units in a business trust at SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly $100 million by selling 222 million units in a business trust at $0.45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly $100 million by selling 222 million units in a business trust at $0.45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .50 to SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly $100 million by selling 222 million units in a business trust at $0.45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise .8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly $100 million by selling 222 million units in a business trust at $0.45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly $100 million by selling 222 million units in a business trust at $0.45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .0304 cents a unit for April-December and SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly $100 million by selling 222 million units in a business trust at $0.45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly $100 million by selling 222 million units in a business trust at $0.45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .50 to SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly $100 million by selling 222 million units in a business trust at $0.45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise .8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly $100 million by selling 222 million units in a business trust at $0.45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly $100 million by selling 222 million units in a business trust at $0.45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .0304 cents a unit for April-December and SINGAPORE, May 22 (Reuters) Pacific International Lines, Singapore's second-largest shipping firm, plans to raise nearly $100 million by selling 222 million units in a business trust at $0.45 each in the first listing of such a trust in Singapore.
The sale comes after bankers were forced to cut the price amid poor investor demand. The offer is 13.5 percent below the upper end of an original price range of $0.50 to $0.52, a spokeswoman at lead manager DBS Bank said.
The Pacific Shipping Trust will have an initial portfolio of eight vessels bought from family-owned Pacific International Lines (PIL), which will be leased back to PIL for eight to 10-year periods.
Income from these ship leases will be distributed to unitholders -- similar to how real estate investment trusts (REITs) distribute rental income from properties.
As a business trust, it will not be subject to a gearing limit -- imposed on REITs -- and income from the trust will be tax-exempt as part of Singapore's drive to support the city-state's shipping industry.
PIL is Singapore's second-largest container shipping group after Neptune Orient Lines.
The unit offer comprises a public tranche of 11.1 million units, with the rest offered to institutional investors. It also has an option to issue an additional 13.9 million units.
Pacific Shipping will separately raise $51.8 million from PIL, which will subscribe to 115 million units, or 34.1 percent, in the shipping trust. PIL will keep at least half its units for at least five years from the listing date.
At the offer price of $0.45, the annualised yield works out at 9 percent for this year and 9.49 percent in 2007 -- almost double an average yield of about 5 percent currently offered by Singapore's property trusts.
Pacific Shipping forecasts a distribution of $0.0304 cents a unit for April-December and $0.0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318 .0427 for the whole of 2007.
Analysts say that Pacific Shipping's 9 percent yield is attractive, but it may not necessarily trigger strong investor interest, given the market's unfamiliarity with business trusts.
''It's a developed instrument in Germany but not so much in the U.S. and other parts of Asia,'' said Rohan Suppiah, an analyst with Kim Eng Securities. ''I think the market's reaction is going to be mixed.
''When REITs were first introduced, the market didn't totally understand the concept and it took some time to start generating interest,'' he said.
Singapore's first REIT was listed in 2002 and the city-state will soon see the 11th listing, with conglomerate Fraser&Neave planning to launch one for some of its shopping malls.
The Pacific Shipping offer closes on Wednesday, with trading of the units on the Singapore Exchange due to open on Friday.
DBS is the financial adviser, underwriter and bookrunner for the offer, while ABN AMRO Rothschild and DnB NOR Markets are co-managers.
REUTERS PV SSC1318
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