By Belinda Lim
GRAND CHINA AIR (HK) GUARANTEED SGD 3Y
_ New Grand China Air (HK) SGD 3Y announced post roadshow. Deal is anchored
– Guarantors: Hainan Airlines Co. Ltd. and Grand China Air Co. Ltd.
– Initial price guidance: 6.25% area
– Issue size: TBC
– Timing: As early as today
Hainan Airlines 6.25% 2017 CNH – 99.75, 6.35% which swaps to 4.50% in SGD (indicative)
Singapore Airline 3.22% 2020 SGD – 2.82% indicative yield
Grand China Air is managed under a parent company called Grand China Airlines Holding Company (GCAHC) which is held jointly by Hainan province government (48.6%), George Soros (18.6%), and the HNA group (32.8%).
Grand China Airlines Holding Company owns 29.06% of Hainan Airlines, a listed company in Shanghai Composite which is their cash-cow although their revenue is growing a lot more than their operating income, and in this case, it is more important to look at the guarantor than the issuer.
Then we have this.
Hainan Government + George Soros > = Temasek or GIC?
The gist is this – Grand China will take over all the 4 airlines under the HNA Group and they have a fleet of 133 planes!!! (SIA …read more
By Belinda Lim
Issuer: Tata International Singapore Pte. Limited
Guarantor: Tata International Limited
Format: Regulation S, Registered Form and S274/275 of SFA
Size: SGD 150 mio
Issue: Guaranteed Senior Perpetual Capital Securities
Price Guidance: 6.7% area (+/- 5bps)
Accounting Treatment: 100% Equity
Call Option: Callable by the Issuer at the 5th anniversary the “First Call Date”) and on any distribution payment date thereafter
1) From the issue date until First Call Date – fixed
Rate: rate of [ ] % (the “Initial Distribution Rate”) payable semi-annually in arrear,
2) From First Call Date and onwards – new fixed rate equal to the Initial Distribution Rate plus the Step-Up Margin of 300bps, payable semi-annually in arrear
Optional Deferral: Distributions deferrable at the discretion of the Issuer subject to the Pusher / Stopper on a cumulative and compounding basis
Pusher: Yes, on ordinary shares of Issuer, Junior and Parity Securities (12 months look-back)
Stopper: Yes, on ordinary shares of Issuer and Guarantor, Junior and Parity Securities
1) Gross-Up Event (Par),
2) Regulatory Event (Par),
3) Accounting Event (at higher of par or make-whole amount (SOR+1.5%) before First Call Date, at Par thereafter),
4) Change of Control Event (Par),
5) Breach of Covenant Event (Par),
6) Relevant Indebtedness Default Event (Par),
7) Clean up Call (at higher of par or make-whole amount …read more
By Belinda Lim
ISSUER: Cambridge-MTN Pte.Ltd.
GUARANTOR: RBC Investor Services Trust Singapore Limited (in its capacity as trustee of Cambridge Industrial Trust)
STATUS: Direct, unconditional, unsubordinated & unsecured Notes
ISSUE RATING: Unrated
CORPORATE CREDIT RATING: BBB- / Stable (S&P)
FORMAT/DOCS: Bearer / Issuer’s SGD 500 million Multicurrency Medium Term Note Programme dated 2 February 2012, supplemented by the Supplemental IM dated 1 March 2012 (collectively the “Programme”)
ISSUE SIZE: SGD 100MM
USE OF PROCEEDS: In accordance with the Programme
INTEREST PAYMENT: Semi-annual, actual/365 (fixed)
DETAILS: SGD250K/ Singapore Law/ CDP
SELLING RESTRICTIONS: As per Programme, S274 and/or 275 of the Singapore SFA
– Transaction is strongly anchored by institutional investors post roadshow
AIMS AMP REIT 4.9% 08/2016 current indicative yield 2.86%
AIMS AMP REIT 3.8% 05/2019 current indicative yield 3.80%
Ascendas REIT 2.5% 05/2019 current indicative yield 2.63%
Cambridge Industrial Trust 4.1% 04/2020 current indicative yield 3.90%
Cambridge REIT has been a favourite with the fund managers since its IPO …read more
By Belinda Lim
The Fed has finally ended quantitative easing (QE) as economic data has shown much improvement, especially the labor market. Unemployment rate has fallen to 5.9%, its lowest ever since the recession started.
Huge Improvement on US Stock Market
QE was basically buying trillions of dollars’ worth of long term bonds in an effort to keep interest rates low. This is turn helped to stimulate the economy, improve the labor market, increase spending etc. The effect of course had been huge on the stock market. The S&P 500 index rose 10% to 30+% during each of the respective QE programs.
The end of QE is generally a positive sign for the economy as well, so the earnings of companies are likely to see even more improvements going forward.
Bond Yields to Start Getting Attractive
Bond yields have generally stayed low throughout QE, making them relatively unattractive compared to equities. Short term interest rates are likely to start increasing in 2015 as well, so as yields increase across the board, current bond prices will take a beating.
It has been difficult to get a balanced portfolio in the past few years due to relatively unattractive bond yields. So for investors without bond allocations, bond yields will finally start …read more
By Belinda Lim
Traveling doesn’t always have to cost a fortune, if you do just a bit of homework. The effort you put in to planning your next holiday can be rewarding when you realize how much you can save. We are not saying to pitch a tent and live on bread during your long awaited holiday, but there are many ways to save on a trip without being a scrooge.
Use Public Transportation… smartly
We all know public transportation would be the cheaper alternative to cabs and guided tours, but take this a notch up and look for deals specially catered for tourists. Most cities offer a tourist-pass that gives unlimited access on their public transport network for a given time frame (usually 24 hours, 72 hours or a week). These passes may seem more expensive than buying a single-ride at first but check again what’s offered. Some of these tourist passes may include free or discounted tickets to museums, attractions and local guided tours. Most passes will also include a printed map and guide that comes in handy when you don’t have an internet connection.
Skip the Fancy Hotels
Unless it’s a business trip of course. Most people …read more
It’s with 50 other persons at Young NTUC, Crossroads last night lah!
And I never say no to free dinner if you are wondering why.
2 takeaways from last night’s talk I would like to share with you:
From working in the corporate world (SPH) to co-founding her own boutique web consultancy, and to starting Bettr Barista, it has been a journey of small transformational changes and personal growth each step of the way.
There was no one single momentous mind flip moment or epiphany.
For those of you who have left school more than 5 years ago, have you learned anything new since leaving school?
Not learning a new word or discovering a new cafe has popped up in your neighbourhood kind. But something to add to your personal growth?
How about those who have been trading/investing for more than 5 years now?
Yes. You know what I am after,
|She looks better in real life|
Mastery of a craft and self esteem
To transform underprivileged women and youth-a-risk into skilled baristas, the 12 weeks course would break the trainees physically and emotionally down before rebuilding their confidence and self-esteem back through mastery of this barista skill. (I personally would …read more
By Belinda Lim
MOST statements in life, when repeated often enough, will be taken as the indisputable truth.
This is especially the case if our general, everyday observations sort of suggest that the statements are right. Few will stop to question their validity – what are the assumptions embedded in those statements, who made those statements and to what purpose, have robust tests been done to verify claims made in those statements.
In the field of finance, one wisdom which is often purveyed is that of life cycle investing. The theory goes that young people should be more aggressive in their investments, i.e. they should allocate a higher proportion of their portfolios to equities for the long term compounding effect to take place. But as a person nears retirement age, he or she should cut their exposure to equities and hold more of their portfolios in bonds and cash.
This makes intuitive sense. Equity prices are more volatile than fixed income instruments, and unlike the latter, there is no assurance of regular pay-outs from equities. As such, it would be “safer” for retirees, who are dependent on their life savings for their daily expenses, to park their money in a less volatile portfolio. What if the …read more
By Alvin Chow
I grew up in the Old Airport area and the Food Centre was known to be a food haven. Pareto principle suggests that a few stalls will get majority of the customers. True enough, there is a legendary Lor Mee stall at Old Airport Food Centre called Xin Mei Xiang (XMX, 新美香), which has a perpetual queue during the peak hours.
I couldn’t remember when was the first time I had a taste of this Lor Mee but I love it even now. (To our foreign readers, Lor Mee is a starchy noodle dish that is popular in Singapore and Malaysia.)
XMX is believed to have competitive advantage and a strong economic moat because it is extremely difficult to replicate the food standard and brand name it has built over the years.
I would also believe the earnings of XMX is rising year-on-year or at least it appears to be. We all believe our perception is reality. Given a record of twenty to thirty years of good earnings, XMX would command a high stock price if it is listed. And many investors would clamour to buy the stocks as nothing could go wrong and they understand Lor Mee well enough. The gut could …read more
By Belinda Lim
Issuer: Loyz Energy Limited
Status: Senior, unsecured
Relevant DSRA: Applicable
Issue Size: TBD
Format/Docs: Reg S Bearer / Issuer’s SGD 250 million Multicurrency Medium Term Note Programme
Price Guidance: 9% (the number)
Redemption at Option of Noteholders upon Change of Shareholding Event: Yes, at par in accordance with the Programme
Redemption at Option of Noteholders upon Cessation or Suspension of Trading of Shares: Yes, at par in accordance with the Programme
Redemption for Taxation Reasons: Yes, at par in accordance with the Programme
Governing Law: Singapore Law
Selling Restrictions: Sections 274 and/or 275 of the Singapore SFA Joint
– Loyz Energy Limited New 2.5y SGD announced post investor meetings.
– Initial price guidance: 9% the number
– Issue size: TBD
– Timing: As early as today’s business
EZRA 4 ¾ 03/21/16 99.60, 5.05%
SWIBER 5 ⅛ 06/06/16 99.60, 5.39%
SWISSCO 5.7 04/16/18 100.25, 5.62%
PERISAI CAPITAL LABUAN 6 ⅞ 10/03/16 99.65 , 7.07%
We have only 2 bonds in Singapore that were launched with a higher coupon than 9% and they …read more
By Belinda Lim
– New Oxley Mtn Pte Ltd SGD 2yrs announced on the back of reverse interests
– Initial price guidance: 5.25% area
– Issue size: TBD
– Timing: This week’s business, as early as today
Oxley 5.1% 12/16: 100.15, 5.02%
Oxley 5.1% 05/17: 100.00, 5.15%
– Oxley Holding Limited (“OHL”) is a developer of residential, commercial and industrial projects and is listed on SGX-ST with a market capitalisation of about S$1.6 billion
– OHL has property development projects in Singapore, United Kingdom, Malaysia, China and Cambodia.
– OHL’s strengths include the ability to meet the changing needs of home buyers, ability to complete development projects within relatively short periods, focus on its core strength of property development, experienced and committed management team and established business relationships and extensive networks.
I am biased against Oxley and it’s not just about its astronomical leverage levels of 9.4 times which is more than double of Olam and all the highly geared commodity trading companies.
Just take a look at their share capital chart
Their share capital back in 2008 was 1 mio.
Current market cap = $ 1.651 bio.
Debt/Equity is 558% at the last count, higher than Dec 2013 level, which is not quite as high as levels of 1800% back in 2010, during the …read more