BOND THREAD

[cbsh38584]

Quote:
Originally Posted by cbsh38584
When Foreign bank recommends the below FX Aus Usd trade. I suspect Aus will weaken. Furthermore, I get some info that Soros is shorting Aus mths ago. I do not know who is the issuer. It could be GS , JPM etc. All foreign banks are very good at selling "bad investment idea to those inexperience investors in the private banking. Let observe the below trade & see how it preform.

I Rejected >90% of their investment recommendation from CS. I will ask Credit Sui my investment ideas & will get them to get quote for me.


29th Apr13
AUS USD SPOT 1.039
12 Monthly Range Target Payout Forward on AUDUSD

Underlying: AUDUSD
Notional per Fixing: AUD 150,000 per fixing
Max. number of fixing: 12
Fixing Frequency: Monthly
Target Redemption Cap Level (TRCL): 5 fixings within the range
Range: 0.9825 – 1.0750
Payout per fixing(if within range): USD 2k per Fixing

How it works:
• On every fixing,if AusUS fix within the range,client will receive USD 2k.
• If AusUS has fixed within the range for 5 X, the structure will be KO’ed.
• Risk if AusUsd fix at or <0.9825, client has to Buy AUD 150k at 0.9825.
• Risk if AusUsd fix at or >1.0750, client has to Sell AUD 150k at 1.075


rdgs,
Vic

Now USD/AUS spot is 0.9745 against the spot weeks ago @ 1.039. This is how the foreign banks recommend bad investment ideas to us. Never trust their recommendation. They should tell those who have AUS$150k, immediately switch out to US$ @ 1.039 instead recommending the above bad investment idea. Easily 5% lost. It may bounce back to >1.00 mths later.

Try not to do Dual currency deposit (DCI) or Premium currency invest (PCI)
at this low VIX enivronment. Not worth the bet. Chances U will not gain anything from it.

rdgs,
Vic

===========================================
USD/AUD spot now is 0.9628. See how the foreign bank recommends bad trading idea to the private clients weeks ago. From 1.039 drops to 0.9623. if it break down below the 0.9550 level, this would be a horrible sign and the market should continue to crumble at that point. Some analyst USD AUD tgt around 0.85. If the CHINA PMI continues to stay below 50, Aud will likely to weaken further. There will be a opportunities to buy AUD denominated bond if it weaken below 0.90 & if the bond price is attractive.

See how the Nikkei index huge drop of >7%. So dont worriy that U are losing to inflation. The more the print, the bigger the next big fall will come.
There is no such thing as Perpetual low interest. I may be doing well in my bond. But If I am greedy & does not know when to exit. It can easily wipe out my past 4 yrs profit within months.


rdgs,
Vic

[indomie]

Thanks. Vic..... U are a genuinely nice guy.

[Werther]

Hi Vic,

Tks for yr advice... Was actually waiting for you to give yr recommendation...

Got some funds on hand for short term punt, just don't know where to put them..

[starrynight]

From Tradehaven:


Anormalies In Singapore Corporate Bonds

by tradehaven HOUSING &DEVELOPMENT BRD 1.23% 30Jan18 99.605 1.232
NTL UNI OF SINGAPORE 1.038% 23Jan18 100.1241 0.968
HOUSING &DEVELOPMENT BRD 1.52% 18Jun19 99.585 1.497
SINGAPORE LABOUR FOUNDAT 1.3% 08Jun17 100.528 1.065
SINGAPORE BUS SERVICES 1.8% 12Sep17 100.1209 1.589

Something caught my eye. Why is NUS and Singapore Labour Foundation so much more expensive than HDB ?

HDB is a stat board like SLF but NUS ?

GLL IHT PTE LTD 4.7% 31May49 99.25 4.783
HOTEL PROPERTIES LTD 6.125% 29May49 103 5.129

Strange if you consider that all the other HPL issues are lower yielding that Guoco.

GLL IHT PTE LTD 4.7% 31May49 99.25 4.783
GLL IHT PTE LTD 4.1% 13May20 99.75 4.058
HOTEL PROPERTIES LTD 3.9% 23Apr20 100.5 3.734
GLL IHT PTE LTD 4.35% 12Sep17 101.25 3.902
HOTEL PROPERTIES LTD 3.95% 13Sep19 101.25 3.636
GLL IHT PTE LTD 4% 25Nov14 101.75 2.453
HOTEL PROPERTIES LTD 6.125% 29May49 103 5.129
GLL IHT PTE LTD 4.875% 11Mar16 103.25 3.449
GLL IHT PTE LTD 5% 23Feb17 103.25 3.911
GLL IHT PTE LTD 5% 23Feb17 103.25 3.911
GLL IHT PTE LTD 4.25% 23Feb15 101.6 2.998

And Guoco must be really something for its real estate to outstrip shipping perps and challenge Nam Cheong senior.

SWIBER HOLDINGS LTD 9.75% PERP 93.5 12.251
EZRA HOLDINGS LTD 8.75% PERP 95 10.468
EZION HOLDINGS LTD 7.8% 29Sep49 101 6.82
NAM CHEONG LTD 6% 05Nov15 102.25 4.68

Indian names continue to make Unicredit sub look bad.

TML HOLDINGS PTE LTD 4.25% 16May18 99.5 4.25
ABJA INVESTMENT CO 4.95% 03May23 98.75 5.044
TATA COMMUNICATION NETHE 4.25% 01Feb16 100.8 3.792
TATA COMMUNICATION NETHE 4.25% 01Feb16 100.8 3.792
UNICREDIT SPA 5.5% 30Jul23 94 6.663
ICICI BANK LTD/DUBAI 3.65% 14Jan20 99.75 3.609
INDIAN OIL CORP LTD 4.1% 15Oct22 99.5 4.099
IDBI BANK LTD/DIFC DUBAI 3.65% 28Aug15 102 2.497

Best observation .... junk still has wings.....

FREIGHT LINKS EXPRESS HL 4.6% 29May17 100.25 4.393
OXLEY HOLDINGS LTD 5.1% 16May17 99.75 5.029
RAFFLES EDUCATION CORP 5.9% 03May18 99.757 5.894
RAFFLES EDUCATION CORP 5.8% 22Feb16 100.25 5.299

Have a good week ahead.

[starrynight]

Today's second issuance:

ISSUER:
Standard Chartered PLC
ISSUER RATINGS:
A2 (Stable) / A+ (Negative) / AA- (Stable)
EXP ISSUE RATINGS:
A2 / A+ / AA-
STATUS:
Senior, Unsecured
FORMAT:
Regulation S, registered form
SIZE:
Benchmark
TENOR:
3 Years
INITIAL PRICE GUIDANCE:
3% area
COUPON:
3% area,Fixed rate, semi-annual
CLEARING:
CDP (with linkage to Euroclear and Clearstream)
DETAILS:
SGX-ST Listing, CNH1m x CNH1k, English Law
SOLE BOOKRUNNER:
SCB
TIMING:
Today’s business
RISK RATING:
P2 (1 to 5, 5 being the highest)

[cbsh38584]

Hi Vic,

Tks for yr advice... Was actually waiting for you to give yr recommendation...

Got some funds on hand for short term punt, just don't know where to put them..

The market is too volatile. Not easy to pick the right investment idea now.
Bond is overbought. Equity has run up. Gold is too manipulative. I am almost doing nothing for the past few weeks. Stop doing ELN/FCN. Just wait for my ELN/FCN to mature in Jun/early July. Just collecting my bond coupon.

Maybe U can try to buy small amt HK2823 (A-share index stock). A-share has been underperforming for the past 2 yrs. HK2823 all time high is HK$16.
All time low is HK9.12. Now it is HK$10.50. Dividend yield is est 1.6%. Payout in Dec. I like to buy underperforming index stock especially it has been underperforming for the past 2 yrs. Check with your banker whether it is worth the risk to buy base on your risk profile.

rdgs,
Vic

[Werther]

Hello cbsh

I am not sure how I can buy HK shares... Can I buy online like buying sg stock? Or need to talk to banker...I have stopped buying products from them ever since they keep recommending me to buy some bond issue and charge high fee...which I didn't buy...but my banker friend at CS also
keep saying keep cash...she shares yr sentiments like low interest, never mind...better than losing some when buying dual $$ or bonds... I guess I am getting impatient as cash didn't generate much yield.

I must learn to hold my horses..not easy lah.. Maybe I go buy some blue chips tmr... Once the buying emotion is satisfied, then no more desire cos no money left liao..

[cbsh38584]

Hello cbsh

I am not sure how I can buy HK shares... Can I buy online like buying sg stock? Or need to talk to banker...I have stopped buying products from them ever since they keep recommending me to buy some bond issue and charge high fee...which I didn't buy...but my banker friend at CS also
keep saying keep cash...she shares yr sentiments like low interest, never mind...better than losing some when buying dual $$ or bonds... I guess I am getting impatient as cash didn't generate much yield.

I must learn to hold my horses..not easy lah.. Maybe I go buy some blue chips tmr... Once the buying emotion is satisfied, then no more desire cos no money left liao..

U can buy HK/SG/US stock through phillip securities/DBS/OCBC/CMIB etc online. Your friend who work in the bank is more qualified to advise U. Maybe you can ask him on this SPH boring slow moving blue chip stock. Yield is 4%. Singapore Press to list two malls worth $2.4 bln in REIT IPO.
U also can try your luck on good IPO share. Dont use all your cash for equity.

rdgs,
Vic

[starrynight]

Fragrance and GPH are on the bandwagon as well, as per today's SGX filing:

FRAGRANCE GROUP LIMITED
» MISCELLANEOUS :: PROPOSED ESTABLISHMENT OF A S$1,000,000,000 MULTICURRENCY MEDIUM TERM NOTE PROGRAMME
(2013-05-27 18:33:47)

GLOBAL PREMIUM HOTELS LIMITED
» MISCELLANEOUS :: PROPOSED ESTABLISHMENT OF A S$300,000,000 MULTICURRENCY MEDIUM TERM NOTE PROGRAMME
(2013-05-27 19:07:31)

[phantom_opera]

hmmm ... 10y UST hits 2.1%

nice chart from zerohedge ...

[starrynight]

They are really pumping out the CNH bonds:

Issuer
DBS Bank Ltd.
Issuer Ratings
Aa1 (Moody's Stable) / AA- (S&P Stable) / AA-(Fitch Stable)
Expected Issue Ratings
Aa1 (Moody's) / AA- (S&P) / AA- (Fitch)
Issue
Offshore RMB Senior Notes
Status
Senior, unsecured, unsubordinated
Format
Regulation S only
Tenor
3 years
Coupon
2.5 - 2.70% area
Initial Price Guidance
TBD, 2.7% area
Issue Size
RMB Benchmark (likely CNH 500m)
Payment
Semi-annual, Actual/365 (Fixed)
Clearing
CDP, with links to Euroclear and Clearstream
Form & Denomination
Registered, CNH 1,000,000 / CNH 10,000
Details
SGD250K/Multicurrency Debt Issuance Programme/Singapore Law/CDP
Listing
SGX-ST
Sole Lead Manager & Bookrunner
DBS Bank Ltd
Timing
Today’s Business
Product risk rating
P1

[cbsh38584]

They are really pumping out the CNH bonds:

Issuer
DBS Bank Ltd.
Issuer Ratings
Aa1 (Moody's Stable) / AA- (S&P Stable) / AA-(Fitch Stable)
Expected Issue Ratings
Aa1 (Moody's) / AA- (S&P) / AA- (Fitch)
Issue
Offshore RMB Senior Notes
Status
Senior, unsecured, unsubordinated
Format
Regulation S only
Tenor
3 years
Coupon
2.5 - 2.70% area
Initial Price Guidance
TBD, 2.7% area
Issue Size
RMB Benchmark (likely CNH 500m)
Payment
Semi-annual, Actual/365 (Fixed)
Clearing
CDP, with links to Euroclear and Clearstream
Form & Denomination
Registered, CNH 1,000,000 / CNH 10,000
Details
SGD250K/Multicurrency Debt Issuance Programme/Singapore Law/CDP
Listing
SGX-ST
Sole Lead Manager & Bookrunner
DBS Bank Ltd
Timing
Today’s Business
Product risk rating
P1

RMB CNY (not CNH offshore) fixed deposit in China is 3.3% for one year. Furthermore, there is custodian charge of 0.1 to 0.25 for bond. As I said months ago, if U are a frequent visit to HK/China. Open a RMB acct at Shenzhen bank of China/ICBC/Construction. I think RMB should be one of the currency in your portfolio. The HK people are puting their money in RMB & the trend may likely to continue.

In Feb13, Std chart SG encourages clients to leverage (LTV 85%) 5 to 10X borrow USD & convert to CNH (0ffshore) & put into a short time fixed D (2+%) of 3 mths to 6 mths. The X-rate was 6.25 in Feb13. Now the Z-rate is est 6.13.

Those who put their money into RMB CNH (x-rate 6.33 last yr) fixed deposit at Bank of China , S'pore branch last yr. Their return likely to be >5% due to the appreciate of CNH (now CNH 6.13).


rdgs,
Vic

[starrynight]

Thanks for the insight!

RMB CNY (not CNH offshore) fixed deposit in China is 3.3% for one year. Furthermore, there is custodian charge of 0.1 to 0.25 for bond. As I said months ago, if U are a frequent visit to HK/China. Open a RMB acct at Shenzhen bank of China/ICBC/Construction. I think RMB should be one of the currency in your portfolio. The HK people are puting their money in RMB & the trend may likely to continue.

In Feb13, Std chart SG encourages clients to leverage (LTV 85%) 5 to 10X borrow USD & convert to CNH (0ffshore) & put into a short time fixed D (2+%) of 3 mths to 6 mths. The X-rate was 6.25 in Feb13. Now the Z-rate is est 6.13.

Those who put their money into RMB CNH (x-rate 6.33 last yr) fixed deposit at Bank of China , S'pore branch last yr. Their return likely to be >5% due to the appreciate of CNH (now CNH 6.13).


rdgs,
Vic

[starrynight]

From Tradehaven:

Why They Are All Selling ? Capitaland, Sing Power, Singtel

by tradehaven SLF sold Comfort Delgro.

Capitaland trying to sell Australand but the deal did not go through.
"May 28 (Bloomberg) -- Australand shrs fall as much as 5.1%,
most since June 5, with volume 54% of 3-mo. full-day avg in 5
minutes of trading; GPT declines as much as 1.4%."

I realise the enormity of the situation when I found out Australia/New Zealand contributes just as much to the Capitaland bottom line as Singapore does. Now, how eerie is that ?

For the period ending 31-Dec-12 % Revenue 3301.36 100 Australia and New Zealand 1182.29 35.81 Singapore 1169.71 35.43 China 587.93 17.81 Europe 196.69 5.96 Other Asia 139.9 4.24 Others 24.85 0.75 Not much impact on their share price or credit spreads though.

Singapore Power
"May 18 (Straits Times) -- SINGAPORE Power, a unit of Temasek
Holdings, is selling hefty stakes in Australian energy firms it
controls to a Chinese state utility firm for an estimated total
of more than A$5 billion (S$6.1 billion)."

Bad news for bond holders ? I am still smarting from the time Huaneng took over Tuas Power and my bonds perished.

Issuer Name Coupon Maturity AMOUNT Curr Bid Price Ask Px
SPI Australia Assets Pty Ltd 4.64 25-Mar-20 150000000 AUD 100.227 100.649
SPI Australia Assets Pty Ltd 3.3 9-Apr-23 500000000 USD 96.3 97.256
SPI Australia Assets Pty Ltd 6.25 21-Feb-17 400000000 AUD 106.5359 107.023
SPI Australia Assets Pty Ltd 5.125 11-Feb-21 250000000 GBP 114.421 115.44
SPI Australia Assets Pty Ltd 7 12-Aug-15 500000000 AUD 106.6219 106.8912
SPI Australia Assets Pty Ltd 2.25 9-Aug-16 175000000 CHF 104.729 105.161

Singtel
"May 29 (Business Times) -- MARKET talk about SingTel's sale
of its Australian satellite unit heated up this week with the
asset taking on a purported price tag of "more than A$2 billion",
but the telco remained tight-lipped on the matter yesterday."

Australia contributes more than Singapore to Singtel's bottom line.
For the period ending 31-Mar-13 % Revenue 18183 100 Australia 11451 62.98 Singapore 6732 37.02 But this is just the satellite unit which is not the entire deal.

Besides all these selling activities (including SLF's Delgro sale last week), Capitaland just issued a convertible bond last week which got me wondering if there was material information withheld ? However, the bonds were in SGD so I better shut up or they will just shut down this blog.

The Capitaland 1.85% 06/2020 is going just slightly lower today at 99.30 on the mid after hitting a low of under 99 on Monday.

It just got me to thinking if they happen to feel that the markets are overripe ? matured ? or if Australia is doomed ? and Singapore taxis and buses are unprofitable ?

[cbsh38584]

From Tradehaven:

Why They Are All Selling ? Capitaland, Sing Power, Singtel

by tradehaven SLF sold Comfort Delgro.

Capitaland trying to sell Australand but the deal did not go through.

"May 28 (Bloomberg) -- Australand shrs fall as much as 5.1%,
most since June 5, with volume 54% of 3-mo. full-day avg in 5
minutes of trading; GPT declines as much as 1.4%."


I realise the enormity of the situation when I found out Australia/New Zealand contributes just as much to the Capitaland bottom line as Singapore does. Now, how eerie is that ?


For the period ending 31-Dec-12 % Revenue 3301.36 100 Australia and New Zealand 1182.29 35.81 Singapore 1169.71 35.43 China 587.93 17.81 Europe 196.69 5.96 Other Asia 139.9 4.24 Others 24.85 0.75 Not much impact on their share price or credit spreads though.

Singapore Power

"May 18 (Straits Times) -- SINGAPORE Power, a unit of Temasek
Holdings, is selling hefty stakes in Australian energy firms it
controls to a Chinese state utility firm for an estimated total
of more than A$5 billion (S$6.1 billion)."


Bad news for bond holders ? I am still smarting from the time Huaneng took over Tuas Power and my bonds perished.


Issuer Name Coupon Maturity AMOUNT Curr Bid Price Ask Px
SPI Australia Assets Pty Ltd 4.64 25-Mar-20 150000000 AUD 100.227 100.649
SPI Australia Assets Pty Ltd 3.3 9-Apr-23 500000000 USD 96.3 97.256
SPI Australia Assets Pty Ltd 6.25 21-Feb-17 400000000 AUD 106.5359 107.023
SPI Australia Assets Pty Ltd 5.125 11-Feb-21 250000000 GBP 114.421 115.44
SPI Australia Assets Pty Ltd 7 12-Aug-15 500000000 AUD 106.6219 106.8912
SPI Australia Assets Pty Ltd 2.25 9-Aug-16 175000000 CHF 104.729 105.161

Singtel
"May 29 (Business Times) -- MARKET talk about SingTel's sale
of its Australian satellite unit heated up this week with the
asset taking on a purported price tag of "more than A$2 billion",
but the telco remained tight-lipped on the matter yesterday."


Australia contributes more than Singapore to Singtel's bottom line.

For the period ending 31-Mar-13 % Revenue 18183 100 Australia 11451 62.98 Singapore 6732 37.02 But this is just the satellite unit which is not the entire deal.

Besides all these selling activities (including SLF's Delgro sale last week), Capitaland just issued a convertible bond last week which got me wondering if there was material information withheld ? However, the bonds were in SGD so I better shut up or they will just shut down this blog.


The Capitaland 1.85% 06/2020 is going just slightly lower today at 99.30 on the mid after hitting a low of under 99 on Monday.


It just got me to thinking if they happen to feel that the markets are overripe ? matured ? or if Australia is doomed ? and Singapore taxis and buses are unprofitable ?

Just receive a SMS from a agent informing me that Interlace condo selling at 20% discount 900psf to 1200psf. I dont believe it true & did not check further.

FYI, base on chart, some analysis says that Capland critical support is $3.40. If it break, it is a bad sign. It is the same as Aus$. If it is break 0.955 support, a bad sign.

There will be opportunities for those who have missed out the bond rally. When interest rate starts to go up, everybody will be like a herd & start to run through a small exit. Many will suffer (including me) for those who have no holding power.


rdgs,
Vic

[princess_morbucks]

FYI, base on chart, some analysis says that Capland critical support is $3.40. If it break, it is a bad sign. It is the same as Aus$. If it is break 0.955 support, a bad sign.

Now it is already 0.96.
Can explain why if break 0.955 then it is bad?
TIA.

[indomie]

Now it is already 0.96.
Can explain why if break 0.955 then it is bad?
TIA.

Now aussie is 0.954. Aussie mining sector now in panic mode. All the loans that goes into mining sector in serious jeopardy. The gov is trying to rescue the industry by lowering the interest rate and weakening the AUD. As along the commodities price is not improving, low AUD is to stay.

[cbsh38584]

Now it is already 0.96.
Can explain why if break 0.955 then it is bad?
TIA.

Just base on technical chart.
if u are not a trader & do not have big Aus$ holding. Then ignore the noise.
FX fluctuate up & down. I got my SING$ converted @1.258. Then it drop to 1.21. Now back to 1.268 after 8 mths.

rdgs,
Vic

[cbsh38584]

Just base on technical chart.
if u are not a trader & do not have big Aus$ holding. Then ignore the noise.
FX fluctuate up & down. I got my SING$ converted @1.258. Then it drop to 1.21. Now back to 1.268 after 8 mths.

rdgs,
Vic

It is also base on FA, Fundamental analysis.

rdgs,
Vic

[princess_morbucks]

Thanks Vic and indomie for the replies.
I guess it is a good time for holiday makers .

[Werther]

Originally Posted by cbsh38584
Just base on technical chart.
if u are not a trader & do not have big Aus$ holding. Then ignore the noise.
FX fluctuate up & down. I got my SING$ converted @1.258. Then it drop to 1.21. Now back to 1.268 after 8 mths.

rdgs,
Vic




Hi Vic

Do u mean dual currency deposit? Sorry, I am a new horn in all these investment. So u think A$ will continue to drop?

Oh dear, I bot some blue chips yesterday and today market start to tank. ...

[phantom_opera]

wow .. big movement in 5y SGS

1.12% for 5y SGS now

[cbsh38584]

Originally Posted by cbsh38584
Just base on technical chart.
if u are not a trader & do not have big Aus$ holding. Then ignore the noise.
FX fluctuate up & down. I got my SING$ converted @1.258. Then it drop to 1.21. Now back to 1.268 after 8 mths.

rdgs,
Vic


Hi Vic

Do u mean dual currency deposit? Sorry, I am a new horn in all these investment. So u think A$ will continue to drop?

Oh dear, I bot some blue chips yesterday and today market start to tank. ...

It is dual currency deposit. It is not worth to do as the volatility is way too low for 2013. So the yield is not attractive at all. For every DCI I do, the bank make a small commission est US$50 to US$100 (base on US$100k). Came to know from the friend.

U buy blue chip because of dividend payout. So Dont get too emotional when it drop. Stay focus.

rdgs,
Vic

[chiaberry]

U buy blue chip because of dividend payout. So Dont get too emotional when it drop. Stay focus.

rdgs,
Vic

Totally agree on this one. I tend to spread out my purchases. When market drop a lot, I buy some more. I am a "snacker" as I cannot digest a big meal all in one go. This also applies to my personal eating habits.

Blue chips are like property. You can hold long term. If you believe in Singapore's prospects long term (if you did not, you wouldn't be invested in property anyway).

[starrynight]

Today's issuance. Lousy timing, given that STI is sown 55 pts as we speak:

- Eu Yan Sang International Ltd (EYS) announced new SGD 5yrs issue after strong responses from the roadshow

- Initial Px Guidance at mid 4%

- Timing: As early as today

- Founded in 1879, EYS is the largest TCM (“Traditional Chinese Medicine”) groups in South East Asia which offers more than 900 products under the EYS brand name and over 1,000 different types of Chinese herbs and other medicinal products under a comprehensive distribution network. It is a household name in Asia with an unrivalled reputation as the leader in the TCM industry.

- Comps:
COURTA 4.75 2016 102.50, 3.83%
ASPSP 5.00 2015 103.00, 3.53%

***NEW ISSUE: EU YAN SANG INTERNATIONAL LTD SGD 5YR ISSUE***

Issuer: Eu Yan Sang International Ltd
Status: Direct, unconditional, unsubordinated and unsecured Notes
Rating: Unrated
Tenure: 5 Years
Issue Size: TBD
Payment: Semi-annual, actual/365 (fixed)
Details: SGD250K/Multicurrency MTN Programme/Singapore Law/CDP
Listing: SGX-ST
Timing: As early as today

[starrynight]

Another issuance:

Issuer
Uni-President China Holdings Ltd.
Expected Issue Ratings
Unrated
Ranking
Senior unsecured
Format
Reg S Registered
Tenor
3 years
Coupon
3.75% area
Initial Price Guidance
TBD, 3.75% area
Issue Size
Offshore RMB Benchmark
Use of Proceeds
General working capital purposes
Clearing Systems
CMU with linkage to Euroclear and Clearstream
Details
CNH 1,000,000 x CNH 10,000, HKSE, Hong Kong Law
Listing
ANZ & DBS Bank Ltd.
Sole Lead Manager & Bookrunner
ANZ(B&D), DBS Bank Ltd, BofAML and Mizuho Securities
Timing
Today’s business
Product risk rating
P4

Group Profile
The Group is one of the leading manufacturers in the food and beverage sector in the PRC. The Group commenced operations in 1992 as the PRC branch of Uni-President, the leading food and beverage conglomerate in Taiwan and one of the largest in Asia. Uni-President has been ranked as 904th of Forbes Global 2000 in 2012.
Since then, the “Uni-President” (“統一”) brand has grown into one of the leading food and beverage brands in the PRC and, as of 31 December 2012, its operations have expanded to include 23 production plants manufacturing and distributing products in 31 provinces, municipal cities and autonomous regions across the PRC.
According to Nielsen, in the year ended 31 December 2012, the Company was ranked, by market volume and value:
• the largest manufacturer of milk tea;
• the second largest manufacturer of RTD tea;
• the third largest manufacturer of juice drinks; and
• the second largest manufacturer of instant noodles in the PRC.
The Company’s consolidated net profit for the three years ended 31 December 2010, 2011 and 2012 was approximately CNY519.1 million, CNY311.9 million and CNY855.9 million, respectively.

Beverages
TheGroup is one of the leadingmanufacturers of non-carbonated beverages in the PRC.As at 31December 2012, the Group produces its beverage products in 78 production lines including PET and TP in the PRC. Sales of beverage products accounted for 69.9 per cent., 63.1 per cent. and 65.0 per cent., respectively, of the Company’s consolidated total revenue in the three years ended 31December 2010, 2011 and 2012.Over the same period, the Company’s beverage segment recorded consolidated profits of approximately CNY637.4 million, CNY228.8 million and CNY764.4 million. The Group’s principal beverage products are juice drinks, RTD tea, milk teas, coffees and bottled water. According to Nielsen, in each of the years ended 31 December 2010, 2011 and 2012, the Group was the third largest manufacturer of juice drinks in the PRC with 11.0 per cent., 11.4 per cent. And 12.6 per cent., respectively, of the total market by sales value. According to Nielsen, the Group was the largest manufacturer ofmilk tea in the PRC in the year ended 31 December 2012, representing 61.4 per cent. of the total market by sales value and 61.5 per cent. of the totalmarket volume for the year. According toNielsen, the Group was also the second largest manufacturer of RTD tea in the PRC in the year ended 31 December 2012, representing 22.7 per cent. of the totalmarket by sales value and 23.2 per cent. of the totalmarket volume for the year. Sales of the Group’s milk tea products have increased rapidly in recent years, accounting for a significant proportion of the Group’s beverage segment revenue for the year ended 31 December 2012.

Instant Noodles
The Group is also one of the leading manufacturers of instant noodles in the PRC. Drawing on the successful operation of its parent, Uni-President, who is one of the leading instant noodle producers in Taiwan , the Group began producing and selling instant noodles as its first product after it began operations in the PRC in 1992. As at 31 December 2012, the Group produces its instant noodle products in 69 production lines in the PRC. Sales of instant noodles accounted for 28.2 per cent., 35.1 per cent. and 34.0 per cent., respectively, of the Company’s consolidated total revenue in the three years ended 31 December 2010, 2011 and 2012. The Company’s instant noodle business segment recorded a profit/(loss) of approximately CNY(9.9) million, CNY165.1 million and CNY225.3 million for the years ended 31 December 2010, 2011 and 2012, respectively. The Group produces bowl noodles, packet noodles and snack noodles of different flavours in its production facilities throughout the PRC. The Group sells instant noodle products under a variety of popular brand names.

The Group principally targets the mid-end to high-end market consisting of bowl and packet instant noodles. According to Nielsen, the Group was the second largest manufacturer of instant noodles in the PRC for the year ended 31 December 2012, representing 15.8 per cent. of the total market by sales value and 15.0 per cent. of the total market volume for the year.

Source: O.C.

[starrynight]

Commentary from Tradehaven:
Bad timing !
Wrong tenor. 3 years would have been better.
Company accounts look in order given their expansion plans.
Not very interesting and not very compelling coupon plus I do not know what is "Bo Ying" compound, their best seller. And their 2nd best seller, birds nests prices have fallen about 60% this year.
Verdict : Fairly priced if 4.5%, no coupon windfall so I will not bother.

- Eu Yan Sang International Ltd (EYS) announced new SGD 5yrs issue after strong responses from the roadshow

- Initial Px Guidance at mid 4%

- Timing: As early as today

- Founded in 1879, EYS is the largest TCM (“Traditional Chinese Medicine”) groups in South East Asia which offers more than 900 products under the EYS brand name and over 1,000 different types of Chinese herbs and other medicinal products under a comprehensive distribution network. It is a household name in Asia with an unrivalled reputation as the leader in the TCM industry.

- Comps:
COURTA 4.75 2016 102.50, 3.83%
ASPSP 5.00 2015 103.00, 3.53%

***NEW ISSUE: EU YAN SANG INTERNATIONAL LTD SGD 5YR ISSUE***

Issuer: Eu Yan Sang International Ltd
Status: Direct, unconditional, unsubordinated and unsecured Notes
Rating: Unrated
Tenure: 5 Years
Issue Size: TBD
Payment: Semi-annual, actual/365 (fixed)
Details: SGD250K/Multicurrency MTN Programme/Singapore Law/CDP
Listing: SGX-ST
Timing: As early as today

[cbsh38584]

FCN on Toyota (TYO7203) + Nomura (TYO8604).
Issuer from Goldman sach

29th May 2013
Spot price Toyota = 6070 Nomura = 830
4 mths
Coupon 15.8%
Strike 85% of 6070 (5159) and 85% of 830 (706)
Knock out 100% = 6070 & 830.

Today toyota price = 5810 (down 4.3%)
Nomura price = 723 (down 13%)

This is another bad investment trade from foreign bank. Less than a week, Nomura already drop 13% since 29th May13. Dont touch FCN or ELN if u are not sure of the counter or dont trade at all. I really want to meet the dealer who recommend this bad investment trade to clients to understand why the he thinks it is a "good" investment" ideas.

rdgs,
Vic

[stl67]

See this link on Property vs Stock. Also may interest those who may want to invest in iskandar.

http://forums.hardwarezone.com.sg/st...y-4236525.html

[indomie]

See this link on Property vs Stock. Also may interest those who may want to invest in iskandar.

http://forums.hardwarezone.com.sg/st...y-4236525.html

Iskandar is like gold coast australia. A good place to retire, but it doesn't have much income generating industries. Wrong move for investment.