The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Axis Real Estate Investment Trust (Axis REIT) has successfully raised RM449.73 million through a private placement exercise aimed at supporting its strategy to pursue high-quality, yield-accretive acquisitions and enhancing its existing portfolio.
The issue price was set at RM1.71 per unit, representing a 5.1% discount to the volume-weighted average market price of RM1.802 per unit. This private placement is Axis REIT's largest to date and highlights strong market confidence in its growth initiatives.
In line with the enlarged unit capital resulting from the placement, Axis REIT has declared an advance fourth interim distribution of 1.10 sen per unit for income earned from Oct 1 to Nov 12, payable on Nov 29.
Leong Kit May, CEO and executive director of Axis REIT Managers Bhd, expressed that the success of this placement underscores strong market confidence in the REIT's growth strategy and commitment to reducing its financing ratio to allow for future portfolio expansion.
Maybank Investment Bank Bhd and CIMB Investment Bank Bhd acted as placement agents for the exercise.
As of Oct 11, 2024, Axis REIT's portfolio included 69 properties across key locations such as the Klang Valley, Johor, Penang, and others, with a total asset value of RM4.87 billion.
Trading of Axis REIT units was temporarily halted due to the announcement. The stock last traded at RM1.80, giving the REIT a market capitalization of RM3.16 billion.
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