COUNTRY REPORT SINGAPOREA five-year fixed-rate tranche pays 8.00%
and a seven-year tranche was set at 8.25%.
The combined offering size is Ps5bn
(US$95m), with an option to increase it to a
total of Ps10bn, depending on demand.
The offering runs on December 10-14,
with issuance planned for December 21.
Crisp rates the bonds AAA. They will be
issued off a Ps20bn shelf registration.
China Bank Capital Corp is issue manager
and bookrunner.
EQUITY CAPITAL MARKETS
› PSB RIGHTS TO OPEN IN JANUARY
PHILIPPINE SAVINGS BANK will open a rights issue
of up to Ps8bn (US$152m) for subscription
between January 7 and January 11.
Investors on the share register as of
December 20 are eligible for the rights.
The bank plans to sell 184.7m shares.
The entitlement ratio and price will be
announced later.
First Metro Investment is the issue manager.
Earlier this year, Metropolitan Bank &
Trust, Bank of the Philippine Islands and
Rizal Commercial Banking raised Ps60bn,
Ps50bn and Ps15bn respectively through
rights offers.
› MPH TARGETS SECOND HALF IPO
Diversified utility Metro Pacific Investments
said it aims to launch a US$200m–$300m
IPO of subsidiary METRO PACIFIC HOSPITALS in
the second half of 2019.
An IPO had originally been planned
for 2016 but was delayed because of
weak market conditions. The benchmark
Philippine Stock Exchange Index is down
14% year to date.
In the first nine months of 2018, 2.5m
outpatients visited MPH, up 18% from
the year ago period, while in-patient
admissions rose 15% to 143,579.
CLSA and UBS have been hired to work on
the IPO.SINGAPORE
DEBT CAPITAL MARKETS
› AIMS AMP SETS UP PROGRAMMEAIMS AMP CAPITAL INDUSTRIAL REIT MANAGEMENT
has established a S$750m (US$547m) debt
issuance programme.
Under the programme, the industrial
property trust can sell senior notes and
perpetual securities in various structures,
tenors and currencies. HSBC Institutional
Trust Services Singapore, in its capacity as
trustee of AA REIT, will be the issuer.
Standard Chartered Bank and UOB will be
arrangers and dealers for the programme.
Proceeds will be used for general corporate
purposes, including general working capital
needs, capital expenditure and refinancing
of bank loans.› MOODY’S LIFTS T2 NOTESMoody’s has upgraded Tier 2 subordinated
bonds issued by Singaporean banks to A2
from A3 following the enactment of an
enhanced bank resolution regime that has
removed uncertainties on when a bank
becomes not viable.
Under the enhanced regime, which
took effect on October 29, the Monetary
Authority of Singapore makes it clearer on
when a bank becomes non-viable, at which
point holders of the Tier 2 notes face a
writedown in their principal bond amount.
By reducing uncertainty, the subordinated
notes carry lower credit risks.
Moody’s had placed the Tier 2 notes
issued by DBS BANK, DBS GROUP HOLDINGS,OVERSEA-CHINESE BANKING CORP and UNITED
OVERSEAS BANK and their respective branches
on an upgrade watchlist since November
2017 when the MAS started to look at
enhancing the bank resolution regime.
The Singapore banks’ corporate ratings
were affirmed by the agency, which noted
that all three banks had maintained robust
and stable financial metrics with their
credit assessments representing some of
the highest in the world, underpinned by
strong solvency and liquidity. DBS Bank,
OCBC and UOB are rated Aa1 while DBS
Group is rated Aa2.
The upgrade had minimal impact on the
banks’ T2 bonds as it had been expected.
But good demand has been seen recently,
shoring up the banks’ yield curve.
“It looks like the prices moved
independently to the rating action and
more in line with market technicals,” said
OCBC’s credit analyst Andrew Wong. “In
general, the shorter tenor papers and those
with three-five years’ remaining tenors
have seen good demand.”SYNDICATED LOANS
› PETREDEC SIGNS US$115M REVOLVERLPG logistic services company PETREDEC
HOLDINGS (EASTERN) has signed a US$115m 364-
day revolving credit facility.
Mandated lead arrangers and
bookrunners ABN AMRO, MUFG and Rabobank
Singapore have committed US$30m each.
Credit Agricole and Citigroup Singapore joined
as MLAs and have been allocated US$15m
and US$10m, respectively.
Parent Petredec is the guarantor of the
loan, which refinances a same-sized one-
year revolver closed last October.
Incorporated in 2014 in Singapore, the
company delivers liquefied propane and
butane and also has LPG terminals and
distribution activities.
Top bookrunners of all Philippine peso bonds
1/1/18 – 30/11/18
Amount
Name Issues Ps(m) %
1 China Bk Capital Corp 13 42,525.0 20.6
2 BDO Unibank 10 38,250.0 18.6
3 BPI 8 28,916.7 14.0
4 Standard Chartered 5 19,890.5 9.6
5 HSBC 3 16,720.5 8.1
6 Philippine National 4 11,559.5 5.6
7 ING 4 9,799.1 4.8
8 Metropolitan B&T 4 8,333.3 4.0
9 Deutsche 1 4,100.0 2.0
10 JP Morgan 2 3,696.5 1.8
Total 32 206,227.4
*Market volume
Proportional credit
Source: Refinitiv data SDC Code: AS10
Top bookrunners of Philippines syndicated loans
1/1/18 – 30/11/18
Amount
Name Deals US$(m) %
1 MUFG 1 150.0 26.3
2* ING 1 60.5 10.6
2* Land Bank of the Philippines 1 60.5 10.6
4* Standard Chartered 1 60.0 10.5
4* First Abu Dhabi Bank 1 60.0 10.5
4* Commerzbank 1 60.0 10.5
4* CTBC Financial 1 60.0 10.5
4* ANZ 1 60.0 10.5
Total 3 571.0
* Based on market of syndication and market total
Proportional credit
Source: Refinitiv data SDC Code: S15bPhilippines global equity and equity-related
1/1/18 – 30/11/18
Amount
Name Issues US$(m) %
1 UBS 4 1,004.1 21.1
2* Deutsche 3 665.1 14.0
2* Goldman Sachs 3 665.1 14.0
2* JP Morgan 3 665.1 14.0
5 Metropolitan B&T 2 604.7 12.7
6 BPI 3 560.2 11.8
7 Morgan Stanley 2 274.8 5.8
8 Citigroup 1 184.5 3.9
9 Maybank 1 76.6 1.6
10 BDO Unibank 1 27.9 0.6
Total 12 4,752.6Source: Refinitiv data