Singapore Post

[KopiKat]

I guess SingPost will pay down their long term debt using the proceeds from the preference shares. In fact, i think SingPost got a very very good deal. SingPost shareholders should be glad that management took advantage of the low interest rate environment to borrow money forever at a low interest

The PERPS pays 4.25% coupon.
SingPost borrowings are at 3.5% and 3.13%, so, very unlikely. See their latest financials, extracts (pg6),

The Group’s borrowings comprised S$200 million 10-year Fixed Rate Notes (the “Notes”) issued in March 2010 and S$300 million 10-year bond issued in April 2003. Both the Notes and the bond are listed on the SGX-ST and carry a fixed interest rate of 3.5% per annum and 3.13% per annum respectively.