COUNTRY REPORT SINGAPOREmultiple of 23 while local competitors trade
in a 28–32 range.
JP Morgan, Morgan Stanley and UBS are the
joint global coordinators and bookrunners
with Deutsche Bank and Goldman Sachs.
BDO Capital and BPI are the domestic
underwriters.
SINGAPORE
DEBT CAPITAL MARKETS
› CITIC ENV TO MAKE CALL
CITIC ENVIROTECH (CEL) will redeem its
US$355m 5.45% senior perpetual notes on
the first call date of November 27.
The announcement on SGX last Friday
cleared any lingering doubts over the water
and wastewater treatment company’s
ability to repay the perpetual bond.
CEL’s financial position was boosted
by the availability of loan facilities
denominated in renminbi and US
dollars from Citic Finance. CEL obtained
shareholder approval on October 12 to tap
the Rmb10bn (US$1.47bn) facilities as well
as a US dollar loan for up to US$240m.
› TEMASEK UPSIZES RETAIL BOND
Retail investors in Singapore have thronged
to the debut retail five-year bond from
TEMASEK HOLDINGS.
The public offering closed last Tuesday
with some S$1.68bn (US$1.22bn) in orders
submitted, contributing to a book of just
over 8x on a targeted S$200m issue size.
As a result, Temasek has raised the
public tranche to S$300m so that all 53,282
valid applications from retail investors will
be allocated a portion of the notes.
The state-owned investment firm, rated
Aaa/AAA (Moody’s/S&P), priced the notes on
October 16 at par to yield 2.7%.
The retail tranche was marketed
alongside a placement tranche to
institutional investors, who had put in
orders amounting to S$1.44bn.
The institutional placement will remain
at S$200m, bringing the total issue size to
S$500m.
While the strong retail appetite reflects
investor willingness to buy the bonds
despite recent restructurings in the
Singapore dollar debt market, bankers
caution that the demand is only for high-
quality bonds from high-grade issuers.
Funding vehicle Temasek Financial IV
will be the issuer of the notes, which will
be guaranteed by the parent company.
Settlement was on October 25.
DBS was global coordinator and joint lead
manager and bookrunner with OCBC, UOB,
HSBC and Standard Chartered Bank.› RETAIL INVESTORS CROWD TEMASEKRetail investors in Singapore have thronged
to the debut retail five-year bond from
TEMASEK HOLDINGS.
The public offering closed last Tuesday
with some S$1.68bn in orders submitted,
contributing to a book of just over 8x on a
targeted S$200m issue size.
As a result, Temasek has raised the
public tranche to S$300m so that all 53,282
valid applications from retail investors will
be allocated a portion of the notes.
The state-owned investment firm, rated
Aaa/AAA (Moody’s/S&P), priced the notes on
October 16 at par to yield 2.7%.
The retail tranche was marketed
alongside a placement tranche to
institutional investors, who had put in
orders amounting to S$1.44bn.
The institutional placement will remain
at S$200m, bringing the total issue size to
S$500m.
While the strong retail appetite reflects
investor willingness to buy the bonds
despite recent restructurings in the
Singapore dollar debt market, bankers
caution that the demand is only for high-
quality bonds from high-grade issuers.
Funding vehicle Temasek Financial IV
will be the issuer of the notes, which will
be guaranteed by the parent company.
DBS was global coordinator and joint lead
manager and bookrunner with OCBC, UOB,
HSBC and Standard Chartered Bank.› LTA BACK FOR MORELAND TRANSPORT AUTHORITY of Singapore last
Monday built its benchmark yield curve
on pricing S$1bn of 35-year bonds at par
to yield 3.43%, or a spread of 31.9bp over
Singapore dollar SOR.
The new unrated bonds come three
months after the statutory agency sold a
S$1.5bn 3.45% 40-year bond, the longest-
dated bond denominated in Singapore
dollars since 2010.
This is LTA’s third foray into the local
market this year. It broke a three-year
absence in March with a S$1.2bn deal of 10
and 30 years priced at 2.75% and 3.35%.
Distribution details were not released
for the latest transaction, but orders well
exceeded S$1bn, allowing the issuer to
upsize from an indicative benchmark size
of around S$600m–$700m. Appetite was
strongest among insurance companies
eager for long-dated assets.
“The investors can still take more long-dated notes so demand is still there,” said a
banker close to the deal.
The new 2053s were trading around
100.25 on Tuesday morning, suggesting the
deal priced on the money.
Settlement will be on October 30, and
the notes will be issued off a S$12bn multi-
currency MTN programme. Proceeds will be
used to fund land transport infrastructure
projects.
DBS was sole lead manager and
bookrunner.RESTRUCTURING
› HYFLUX SHELVES TUASPRING SALEHYFLUX is shelving plans to sell its Tuaspring
integrated power and water plant, one
week after receiving a financial rescue
proposal from two strategic investors.
The Singapore water treatment company
said it would hold talks about the matter
with Malayan Banking (Maybank), the sole
secured creditor of the project.
Hyflux announced on October 18 that SM
Investments, a partnership of Indonesia’s
Salim Group and Medco Group, will invest
S$400m (US$290m) in the embattled
company, and provide S$160m of loans.
The Indonesian investors appear keen
to retain the Tuaspring plant as the asset
complements their businesses. While
Salim Group owns and operates a 800MW
power genco in Singapore and has water
treatment and supply businesses in the
region, Medco supplies natural gas to
Singapore and operates clean energy power
plants in Indonesia.
Hyflux, burdened by a debt of over
S$3bn, had embarked on a sale of
Tuaspring to pay off a S$720m secured
project loan to Maybank. Local media
reported that only one formal bid was
submitted and was well below Hyflux’s
targeted sale price.
Hyflux said last Tuesday on its website
that given the investors’ offer, “a voluntary
sale of Tuaspring will no longer be actively
pursued” and that talks to that effect would
be held with Maybank.
The strategic investments are subject
to various approvals from regulatory
agencies, creditors and shareholders. One
requirement is for the restructuring of
existing debt through court proceedings in
a scheme of arrangement.
The company said it seek the buy-in
of creditors on the intended scheme of
arrangement. No further details were given.
“There is still a significantly large cash gap
which would need to be reduced via other
means. We think at least part of the principal
amount on the perpetual and preference