K-Green Trust

Keppel Corporation will distribute the KGT Units by way of a dividend in specie to Shareholders.

Keppel Corporation will distribute up to 325,900,000 Units (or approximately 51.0%) of the total number of Units in KGT in issue immediately prior to the Listing, Keppel Integrated Engineering Limited, the Sponsor of KGT and the environmental engineering division of Keppel Corporation, will retain approximately 49.0% of the KGT Units immediately prior to the Listing.

KGT’s initial portfolio will comprise Senoko Waste-to-Energy Plant, Keppel Seghers Tuas Waste-to-Energy Plant and Ulu Pandan NEWater Plant.

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Createwealth8888:

What is there for current Kep Corp's shareholders?

Since it is distributed by way of a dividend in specie to Shareholders and that means a fair level playing field for retail shareholders at the time of listing. The supply of K-Green in the market will be limited and that will provide a good support.

A debt free company. Don't you like it?

I am holding on to the distributed K-Green for compounding effect and for pasive income from dividends.

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Lim & Tan Securities


Based on projected distribution of 3.91 cents for 6 months and 2 days in 2010, and 7.82 cents for FY10, 11, the yield at $1.13 would be 6.82% (annualized) and 6.95% respectively. As a comparison, City Spring offers a trading yield of 7% at 60 cents (DPU of 4.2 cents). Note however two key differences between the two:

KGT is Singapore-centric whereas 50% of City Spring is accounted for by Basslink in Australia;

KGT is debt free vs City Spring’s high gearing, which has implications for KGT’s growth strategy going forward.

We believe KGT is attractive. KGT’s listing is expected at end June, and results from the distribution-in-specie by Keppel Corp on the basis of 1 KGT unit for every 5 Kep C shares, valued at 22.6 cents per Kep C share.)

Kim Eng Securities

The listing price for Keppel Corp’s Keppel Green Trust (KGT) has been set at $1.13 per unit. Keppel projects a DPU of 3.91 cts for the remainder of FY10and 7.82 cts for FY11. This generates a yield of 6.82% in FY10 (annualised) and 6.95% in FY11. We see fair value of KGT at $1.53, with the implied yield of 5% derived from a highly stable cash flow.