SINGAPORE, - CapitaLand,Southeast Asia's biggest developer, said on Friday it sold $1.1 billion of convertible bonds.

The company said Credit Suisse , who acted as solebookrunner and lead manager for the issue, may exercise an
option by Aug 29 to increase the size of the bond by up to $100 million.

CapitaLand said the bonds will carry a coupon of 2.875 percent per year, confirming an earlier Reuters report, and offer a conversion premium of 20 per cent against the closing price of CapitaLand shares on Thursday of $3.99.

"The objective of this fund raising is primarily to extend the group's debt maturity profile," the company said in a statement.

Separately, CapitaLand said it has agreed to repurchase an aggregate principle amount of $250 million of the outstanding convertible bonds due in 2018 for $238.9 million.

It said upon the completion of the repurchase agreement CapitaLand is expected to post a gain of $9.6 million in its consolidated financial statement for the full year of 2009.