Following the relaxation, proceeds from PDS issues can now be used to finance the development of a hypermarket subject to the following conditions:
- The proposal for operating a hypermarket has been approved by the Ministry of Domestic Trade and Consumer Affairs;
- The building must be purpose-built for the issuer’s own business operations as a hypermarket;
- Total retail floor space that is funded out of proceeds of a PDS offering shall not be leased out to third parties; and
- The issuer continues to comply with the conditions set out above and all other conditions as may be prescribed by other regulatory authorities from time to time.
Prior to this, the “construction of hypermarkets” fell under the definition of the “construction of shopping complexes.” The construction of shopping complexes remains an activity not allowed to seek funding through the issue of PDS.
An updated NBMC Negative List (Appendix 1) which lists circumstances in which proceeds from PDS issues cannot be utilised, is available here.
