› CAPITALAND IN WELCOME RETURN
Blue-chip developer CAPITALAND made a rare,
albeit welcome, trip to the domestic bond
market, with a tightly priced new issue on
Monday, pulling in orders of over S$750m
from 67 accounts.
The S$500m of 10-year bonds priced at
par to yield 3.08%, having tightened from
initial guidance of 3.25% area. The final
pricing translated to Singapore swap offer
rate plus 75bp.
As CapitaLand’s outstanding 2024 notes
trade at 2.66%, or SOR plus 65bp, it paid a
minimal amount for a three-year extension.
Singapore investors bought 95% of the
Reg S notes and others bought 5%. In terms
of investor types, 69% were insurers, fund
managers and government investors, 21%
were private banks and others and 10%
were banks.
CapitaLand Treasury will issue the
bonds, which will carry a guarantee from
CapitaLand and will be unrated.
DBS was sole bookrunner on the
offering, off CapitaLand’s S$5bn euro MTN
programme.
The new notes were bid at 100.15 in
secondary trading on Tuesday.
The property developer is a rare issuer,
having last printed senior unsecured bonds
in August 2014.
Singapore state investment holding
company Temasek Holdings has a 39.57%
stake in CapitaLand.
› CITIC ENVIRO CHOOSES SING DOLLARS
CITIC ENVIROTECH on Wednesday priced
S$240m of senior perpetual non-call
three notes, the maximum amount it had
targeted, drawing orders of over S$1.4bn
from 87 accounts.
The notes priced at par to yield 3.9%,
from initial guidance of 4.3% area.
The distribution rate resets to the initial
238bp spread over Singapore swap offer
rate after three years and every subsequent
year. There is a step-up of 500bp in case the
notes are not called after three years.
Singapore investors bought 61% of the
notes, Hong Kong accounts booked 32% and
others purchased 7%. As for investor types,
insurers, fund managers and sovereign
wealth funds bought a combined 52%,
while private banks, banks and others took
the remainder.
DBS was sole global coordinator, as well
as joint bookrunner with Barclays and CLSA.
Earlier this month, the company held
investor meetings in Singapore and Hong
Kong to discuss selling bonds in US dollars
or Singapore dollars, but now it will not
need to issue in the greenback.
The Singapore-based water-treatment
company is part of China’s Citic Group.
Proceeds will be used to refinance debt and
for general corporate purposes. The company
has US$355m of unrated perpetual bonds
callable on November 27 2018.› SMOOTH REOPENING FOR SIASINGAPORE AIRLINES priced on October 6
a S$200m tap of its 3.13% bonds due
November 17 2026, with DBS as sole
bookrunner.
The reopening priced similar to the
guidance of 101.5, implying a yield of
2.941%.The issuer and the bonds are unrated.
The tap lifted the outstanding size to
S$630m.› GALLANT DRAWS EARLY DEMANDSingapore-listed GALLANT VENTURE said holders
of S$190.5m of its S$230m 7% bonds due
April 6 2018 had submitted them for its
tender offer as of the early-bird deadline.
Holders of S$192.25m of bonds voted on
Gallant’s proposal to insert a call option to
allow it to buy back the remaining notes at
face value, and 99.48% of these votes were
in favour.
Gallant said that, based on the early
response, it expected to achieve a quorum
and pass the resolution.
The Indonesian industrial and resort
property developer will buy back bonds
at par under the tender offer, with an
additional consent payment of 0.15%, or
S$375 of the principal amount.
Those that tendered on or before the
early-bird deadline will also receive 0.35%,
or S$875 of the principal amount. The offer
ends on October 16.
DBS and Standard Chartered are joint
dealer managers.› SECURED DEAL FOR PRIME ASSETPRIME ASSET HOLDINGS priced on Thursday a
S$170m seven-year senior secured bond
offering at par to yield 2.9%, having
tightened from initial guidance of 3.1%
area.
The yield translated to 87.5bp over the
Singapore seven-year swap offer rate.
The unrated issue drew orders of overIS YOUR COMPANY
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