BOND THREAD

[Santro]

Sorry to hijack this discussion. Is there any good website where I can read more about bonds and the ones available in Singapore. How to invest, taxation etc.

[Laguna]

Sorry to hijack this discussion. Is there any good website where I can read more about bonds and the ones available in Singapore. How to invest, taxation etc.

You can read from post 1 of this thread, will give you some basic knowledge.
Kinokuniya at Taka has many good books on bond and investment, I just bought a few last week on the world book day and 20% off

[Santro]

Thanks Laguna. Any specific book names or authors.

You can read from post 1 of this thread, will give you some basic knowledge.
Kinokuniya at Taka has many good books on bond and investment, I just bought a few last week on the world book day and 20% off

[starrynight]

Thanks for the info.

Goes to show that there are a lot of rich / cash-rich people out there who are desperate to do something to avoid depreciation of their cash, given the (relatively) low yield for the long tenor.

Heard it was 4X over-subscribed and yield came to about 4.1%...

[Pikachu1245]

Ha Ha. How to increase skin thickness to be invincible

[Pikachu1245]

The findings I uncovered in my participation in this forum is :
1. Many do not know their objective, so don't know what to invest.
2. Many do not set objectives because they did not go into 1 as above.
3. Many expect whatever said in the forum to be true and don't do their own due diligence.
4. Many want to be spoon fed.
5. Many do contradict but don't provide evidence.
6. Many just tell u, wheni ask for proof, they tell u, go find yourself. If we can find ourselves, we would not be contradicting u in the first place. It could be a case, we don't know where to find.

What I also found is,
There are many genuine people here who really want to help and for that, I am appreciative.
So Bottomline, I do enjoy this forum.

Wise saying.....

[starrynight]

Today's issuance:

Issuer:
Greentown China Holdings Limited
Guarantor:
All of the Issuer's offshore Restricted Subsidiaries other than the Non-Guarantor Subsidiaries and Designated Offshore Non-Guarantor Subsidiaries
Issuer rating:
B2 (Positive) by Moody's / B (Positive) by S&P
Issue rating:
Unrated
Status:
Senior Unsecured
Tenor:
3Yrs
Issue Size:
TBA
Initial Price Guidance:
6% Area
Use of Proceeds:
To refinance certain existing short term debts and to fund capital expenditures and general corporate purposes
Listing:
SEHK Listing
Denoms:
CNY 1,000k / CNY10k
Governing Law:
New York Law
Joint Bookrunners:
BOCI, Deutsche Bank, HSBC, ICBC (Asia), Standard Chartered Bank ( Hong Kong ) Limited
Timing:
Expect today’s business
Risk Rating:
P5

[starrynight]

Could someone advise the current price please? Thanks,

Today's issuance:

Issuer:
Trikomsel Pte. Ltd.
Guarantor:
PT Trikomsel Oke Tbk
Structure:
Fixed Rate Senior Unsecured Notes
Issuer/Guarantor/Issue rating:
Unrated
Format:
Regulation S; Singapore (Sections 274 and 275 of the Securities and Futures Act (Cap. 289))
Tenor:
3 years
Issue Size:
TBD
Initial Price Guidance:
Mid to High 5% area
Change of Control:
Change of Control put at 101%
Financial covenants:
FCCR not less than 2.0x so long as Notes remain outstanding
Listing:
SGX-ST
Clearing:
CDP
Denoms:
SGD250k
Governing Law:
English Law
Use of Proceeds:
Refinance a portion of existing borrowings
Joint Global Coordinators:
ANZ and J.P. Morgan
Joint Bookrunners:
ANZ, J.P. Morgan and Standard Chartered Bank

[starrynight]

Today's issuance:

Issuer:
HSBC Institutional Trust Services ( Singapore ) Limited (in its capacity as trustee of First REIT)
Status:
Senior, unsecured
Rating:
Unrated
Issue Size:
TBD
Format/Docs:
Issuer's S$500M Multicurrency Medium Term Note Programme dated 11 April 2013
Price Guidance:
4.375% area, semi-annual, ACT/365 (Fixed)
Tenor:
5-year
Denomination:
SGD250K
Governing Law:
Singapore Law
Listing:
SGX-ST
Clearing:
CDP
Selling Restrictions:
Sections 274 and/or 275 of the Singapore SFA
Bookrunners:
HSBC / OCBC (B&D)
Timing:
As early as today's business
Risk Rating:
P4

I have applied for 2 lots. Aim to stag.

[starrynight]

Commentary from Tradehaven:
** KEY COMPS
LMIRT 4.88% 2015 @ 103.5 / 3.2%
AAREIT 4.9% 2016 @ 105 / 3.26%
First issue for First Reit which is 22.4% owned by the Lippo consortium, Lippo Karawaci and a couple of funds = strong backing. Mkt cap SGD 934 mio vs MTN SGD 500 mio.
Assets are 12 healthcare related properties = non cyclical and mostly located in the new darling of EM - Indonesia.
Cash flow management has been prudent and stable although secured debt jumped >300% last year to SGD 212 mio, probaby due to the SGD 168 mio term loan facility from OCBC.
They have been on a buying spree buying 2 Indonesian hospitals from Lippo in Mar and 2 more last Nov. Typical I sell you and you sell to me deals ?
I still this bond should sell itself and again, will be a private bank deal with retail investors making up the bulk. Fees offered to bankers are marginally less than Trikomsel.
Not much worries with Lippo 21% share sealed in a convenant for their term loan, which is an overall plus.
Risk ahead would be further expansion plans which would require additional fund raising. Yet this current spread of 5Y + 3.5% is generous enough (5Y interest rate is 0.83/0.81% today).
I was going through the LMRT bonds and realise that they have rallied alot, particularly, the LMRT 5.875% 07/2017 paper which is trading at 106 handle (yield 4.2ish%).
Why not a switch into First Reit ? which looks like a better credit and is yielding more for less than a year difference in maturity ? Switching out of the other Lippos is not a bad idea.
Issuer Name Coupon Maturity Bid Price Ask Px LMIRT Capital Pte Ltd 4.48 11/28/17 101.59 102.8 LMIRT Capital Pte Ltd 4.88 07/06/15 103.25 103.8 LMIRT Capital Pte Ltd 5.875 07/06/17 106 106.5
Verdict : Buy or switch but do not expect a massive rally. Issue size should be small ie. 50-100 mio and potentially pose liquidity problems in the secondary market.

Today's issuance:

Issuer:
HSBC Institutional Trust Services ( Singapore ) Limited (in its capacity as trustee of First REIT)
Status:
Senior, unsecured
Rating:
Unrated
Issue Size:
TBD
Format/Docs:
Issuer's S$500M Multicurrency Medium Term Note Programme dated 11 April 2013
Price Guidance:
4.375% area, semi-annual, ACT/365 (Fixed)
Tenor:
5-year
Denomination:
SGD250K
Governing Law:
Singapore Law
Listing:
SGX-ST
Clearing:
CDP
Selling Restrictions:
Sections 274 and/or 275 of the Singapore SFA
Bookrunners:
HSBC / OCBC (B&D)
Timing:
As early as today's business
Risk Rating:
P4

I have applied for 2 lots. Aim to stag.

[starrynight]

Another issuance today:

Issuer:
Yuexiu REIT MTN Company Limited
Guarantor:
HSBC Institutional Trust Services ( Asia ) Limited (in its capacity as trustee of, and with recourse limited to the assets of, Yuexiu Real Estate Investment Trust)
Issuer rating:
Baa2 Stable / BBB Stable (Moody's / S&P)
Expected Issue rating:
Baa2 (Moody's) & BBB- (S&P)
Format:
Reg S registered (off MTN Programme)
Status:
Fixed rate, Senior unsecured
Size:
US$ Benchmark
Tenor:
5 year
Risk Rating:
P3 - Sophisticated
Guidance:
3.33% area (CT5+ 260 area; CT5~0.731%)
Change of Control:
$101 put
Make Whole Call:
T+ 50bps
Details:
Denoms US $200k/1k; Listing: HKEX; Law: English
UOP:
Refinance certain indebtedness and for general corporate purposes
Timing:
BOC, DBS, HSBC, MS(B&D)

[sherlock]

Commentary from Tradehaven:
** KEY COMPS
LMIRT 4.88% 2015 @ 103.5 / 3.2%
AAREIT 4.9% 2016 @ 105 / 3.26%
First issue for First Reit which is 22.4% owned by the Lippo consortium, Lippo Karawaci and a couple of funds = strong backing. Mkt cap SGD 934 mio vs MTN SGD 500 mio.
Assets are 12 healthcare related properties = non cyclical and mostly located in the new darling of EM - Indonesia.
Cash flow management has been prudent and stable although secured debt jumped >300% last year to SGD 212 mio, probaby due to the SGD 168 mio term loan facility from OCBC.
They have been on a buying spree buying 2 Indonesian hospitals from Lippo in Mar and 2 more last Nov. Typical I sell you and you sell to me deals ?
I still this bond should sell itself and again, will be a private bank deal with retail investors making up the bulk. Fees offered to bankers are marginally less than Trikomsel.
Not much worries with Lippo 21% share sealed in a convenant for their term loan, which is an overall plus.
Risk ahead would be further expansion plans which would require additional fund raising. Yet this current spread of 5Y + 3.5% is generous enough (5Y interest rate is 0.83/0.81% today).
I was going through the LMRT bonds and realise that they have rallied alot, particularly, the LMRT 5.875% 07/2017 paper which is trading at 106 handle (yield 4.2ish%).
Why not a switch into First Reit ? which looks like a better credit and is yielding more for less than a year difference in maturity ? Switching out of the other Lippos is not a bad idea.
Issuer Name Coupon Maturity Bid Price Ask Px LMIRT Capital Pte Ltd 4.48 11/28/17 101.59 102.8 LMIRT Capital Pte Ltd 4.88 07/06/15 103.25 103.8 LMIRT Capital Pte Ltd 5.875 07/06/17 106 106.5
Verdict : Buy or switch but do not expect a massive rally. Issue size should be small ie. 50-100 mio and potentially pose liquidity problems in the secondary market.

Saw this a bit late! Checking with my banker if still can apply... thanks for info

[Laguna]

Just applied the new IPO
Hope can make some quick money 8%

[sherlock]

ANy luck? u managed to get? Heard it was 10 times over

[Laguna]

ANy luck? u managed to get? Heard it was 10 times over

Closing tomorrow
Retail is only about 22m shares

[Laguna]

Where is Vic and stl67
So boring

[starrynight]

Good luck. I gave this a miss.

I'm waiting to see how well the private placement for the Taiwanese cable TV trust does, then decide if I want to try my luck at the ATM

Just applied the new IPO
Hope can make some quick money 8%

[DC33_2008]

DJ hits 15009 while gold drops to US$1448.

[DC33_2008]

Gold is US$1442 at 10.46pm.

[stl67]

been a bit busy with my properties... architect giving me some headache..

btw, since bonds price are now so high would it be more attractive to go into some bond funds instead? the PIMCO bond funds is giving about 4.5%. Is this normal? Forgot the price I went in though. My banker is recommending that I top up since it is a better managed funds.

I am also looking at a high yield fund manage by Neuberger Bergman. The bonds bought into are mostly junk bonds. Anyone holds any of this high yield funds? Can share share what are the pros and cons?

The sales charge I am getting is 1% compare and I think this is quite attractive right?

[DC33_2008]

Architect is paid by you. You call the shots. They can do wonders.

been a bit busy with my properties... architect giving me some headache..

btw, since bonds price are now so high would it be more attractive to go into some bond funds instead? the PIMCO bond funds is giving about 4.5%. Is this normal? Forgot the price I went in though. My banker is recommending that I top up since it is a better managed funds.

I am also looking at a high yield fund manage by Neuberger Bergman. The bonds bought into are mostly junk bonds. Anyone holds any of this high yield funds? Can share share what are the pros and cons?

The sales charge I am getting is 1% compare and I think this is quite attractive right?

[stl67]

Architect is paid by you. You call the shots. They can do wonders.

I trusted this young architect too much. Now I am paying for the price. Lesson learned. Nvr mind life must still move on. Cannot always want to win.

[DC33_2008]

You can always do something to his/her professional fee if they lack the professionalism.

I trusted this young architect too much. Now I am paying for the price. Lesson learned. Nvr mind life must still move on. Cannot always want to win.

[starrynight]

Today's issuance:

Issuer:
Oxley Holdings Limited
Status:
Senior, unsecured
Rating:
Unrated
Issue Size:
TBD
Format/Docs:
Off Issuer's SGD300Millon Multicurrency Medium Term Note Programme
Price Guidance:
5.25% area
Issue Price:
100%
Tenor:
4NC3
Call Option :
The issuer may call, in whole but not in part, the Notes at 100.25 on the 6th interest payment date, together with the accrued interest
Financial Covenants
(i)Consol. Tangible Net Worth ≥S$175mil (until 31 Dec 2015) and ≥S$225mil (from 1 Jan 2016 onwards;
(ii)(ii)Consol. Total Borrowings / Consol. Total Assets ≤0.75x (until 30 Jun 2016) and ≤0.70x (from 1 Jul 2016 onwards)
Div Payout Restriction
Cash dividend payout ratio cannot exceed 25% of Consolidated EBITDA if the Debt/Equity Ratio is more than 4.0 times.
Denomination:
SGD250K
Governing Law:
Singapore Law
Listing:
SGX-ST
Clearing:
CDP
Selling Restrictions:
Sections 274 and/or 275 of the Singapore SFA
Sole Lead Manager:
UOB
Timing:
As early as today's business
Risk Rating:
P4 - Sophisticated

I applied for 1 lot. Not likely to get, but the allocation for First REIT is not out yet, so I don't want to be caught nekkid

[sherlock]

Today's issuance:

Issuer:
Oxley Holdings Limited
Status:
Senior, unsecured
Rating:
Unrated
Issue Size:
TBD
Format/Docs:
Off Issuer's SGD300Millon Multicurrency Medium Term Note Programme
Price Guidance:
5.25% area
Issue Price:
100%
Tenor:
4NC3
Call Option :
The issuer may call, in whole but not in part, the Notes at 100.25 on the 6th interest payment date, together with the accrued interest
Financial Covenants
(i)Consol. Tangible Net Worth ≥S$175mil (until 31 Dec 2015) and ≥S$225mil (from 1 Jan 2016 onwards;
(ii)(ii)Consol. Total Borrowings / Consol. Total Assets ≤0.75x (until 30 Jun 2016) and ≤0.70x (from 1 Jul 2016 onwards)
Div Payout Restriction
Cash dividend payout ratio cannot exceed 25% of Consolidated EBITDA if the Debt/Equity Ratio is more than 4.0 times.
Denomination:
SGD250K
Governing Law:
Singapore Law
Listing:
SGX-ST
Clearing:
CDP
Selling Restrictions:
Sections 274 and/or 275 of the Singapore SFA
Sole Lead Manager:
UOB
Timing:
As early as today's business
Risk Rating:
P4 - Sophisticated

I applied for 1 lot. Not likely to get, but the allocation for First REIT is not out yet, so I don't want to be caught nekkid

This one seems a bit complex... does it mean that the interest is variable?

[starrynight]

It just means:
a. coupon is 5.25% (or whatever is the final fixed coupon), but
b. at end of year 3, Oxley can buy back from you at 1.0025 on the dollar. You keep the coupons already earned.

In real life, that means that at some point in / around year 3, the price likely won't be more than 1.02x on the dollar cos new buyer will not want to take the risk of buying at higher price and getting knocked out at 100.25.

This one seems a bit complex... does it mean that the interest is variable?

[sherlock]

It just means:
a. coupon is 5.25% (or whatever is the final fixed coupon), but
b. at end of year 3, Oxley can buy back from you at 1.0025 on the dollar. You keep the coupons already earned.

In real life, that means that at some point in / around year 3, the price likely won't be more than 1.02x on the dollar cos new buyer will not want to take the risk of buying at higher price and getting knocked out at 100.25.

Thanks... was reading the clause on dividend restriction and gave me a shocker

[starrynight]

Yup, but do note:
a. that applies only if the stated condition is hit; and
b. "good" for bondholders, but bad for shareholders.

Thanks... was reading the clause on dividend restriction and gave me a shocker

[Laguna]

I trusted this young architect too much. Now I am paying for the price. Lesson learned. Nvr mind life must still move on. Cannot always want to win.

One of my propeties, was done by a leading architectural firm of Singagore, one of the most reputed ones. The architect in charge was only about late 20 or at most early 30, young girl.

And we are filing in millions of claim for defects....

[Laguna]

btw, since bonds price are now so high would it be more attractive to go into some bond funds instead? the PIMCO bond funds is giving about 4.5%. Is this normal? Forgot the price I went in though. My banker is recommending that I top up since it is a better managed funds.

I am also looking at a high yield fund manage by Neuberger Bergman. The bonds bought into are mostly junk bonds. Anyone holds any of this high yield funds? Can share share what are the pros and cons?

The sales charge I am getting is 1% compare and I think this is quite attractive right?

duplicated
hit the keyborad too fast