They issuing 7 year bonds at 3.65%
u guys getting?
SINGAPORE: Frasers Centrepoint (FCL) plans to raise S$200 million from a bond issue which will be offered to both retail and institutional investors.
The seven-year bonds will carry a fixed interest rate of 3.65 per cent a year and will be issued by its subsidiary FCL Treasury. Up to S$150 million worth of bonds will be offered to the public and another S$50 million will be made available to institutional and other investors. The bonds will be issued at S$1,000 each and the minimum investment is S$2,000.
FCL said it plans to use the net proceeds for general corporate purposes, which include refinancing existing borrowings, financing investments and general working capital.
FCL listed Frasers Hospitality Trust on the Singapore Exchange in July last year. It has also deepened its presence in Australia with the acquisition of Australand Property Group in October 2014.
- CNA/hs
Historical div yield of 4.68% @ 1.84 for the parent shares vs 3.65% for a 7 year bond at a global rate cycle that appears to be bottoming out... what is your call?
Vested
GG
(13-05-2015, 09:44 AM)Happymeowmeow Wrote: [ -> ]SINGAPORE: Frasers Centrepoint (FCL) plans to raise S$200 million from a bond issue which will be offered to both retail and institutional investors.
The seven-year bonds will carry a fixed interest rate of 3.65 per cent a year and will be issued by its subsidiary FCL Treasury. Up to S$150 million worth of bonds will be offered to the public and another S$50 million will be made available to institutional and other investors. The bonds will be issued at S$1,000 each and the minimum investment is S$2,000.
FCL said it plans to use the net proceeds for general corporate purposes, which include refinancing existing borrowings, financing investments and general working capital.
FCL listed Frasers Hospitality Trust on the Singapore Exchange in July last year. It has also deepened its presence in Australia with the acquisition of Australand Property Group in October 2014.
- CNA/hs
already have FCL.. so will probably take some bonds too
have both hahahaha
> 12 May 15 - issue S$200m 7 year notes @ 3.65% with potential of upsizing to S$500m
No wonder they go for retail tranche. The affluent PB clients want 4+ - 5% :-)
Interesting to see if they can go for another retail tranche up to $1bn.
FCL is closed to exhausting their total S$3bn limit on the loan program.
At the current indicative S$200m 3.65% 7 years note, FCL would have locked in S$1.7bn 5 years $ at 4.675%.
Should retail demand enable them to issue the maximum S$500m balance, the cost of funds for the entire S$2bn will be an attractive 4.5215%.
Quite shrewed for substantial use of OP$.
GG
(13-05-2015, 02:55 PM)Contrarian Wrote: [ -> ]> 12 May 15 - issue S$200m 7 year notes @ 3.65% with potential of upsizing to S$500m
No wonder they go for retail tranche. The affluent PB clients want 4+ - 5% :-)
Interesting to see if they can go for another retail tranche up to $1bn.
(13-05-2015, 10:41 AM)greengiraffe Wrote: [ -> ]Historical div yield of 4.68% @ 1.84 for the parent shares vs 3.65% for a 7 year bond at a global rate cycle that appears to be bottoming out... what is your call?
Vested
GG
Cannot compare equities and bonds in that manner, since one is way more volatile (earnings? payout ratio? etc.) that the other other than of course the obligation to pay the fixed rate.
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The bond issue does seem quite decent compared to the others in the market. I'd think CMA's yield is not reflective and on the high side since most people would expect them to redeem the bonds before 2017. I'd bet my 2 cents that they'll need to upsize it to 500m.
All in for me, knowing that most probably it will open above par, earn some kopi money better than nothing. Ready to liquidate positions in CMT bonds for FCL bonds.