The Keppel Corp Charity

There are many ways to give to charity and it looks like Keppel is certainly one of them.

Within 6 months, the company potentially made over SGD 6 million off investors of her 3 issues this year if they were bought back from the marketplace. .

Date Issuer Name Amount SGD (Mln) Coupon Maturity LAST PX CALL DATE   6,316,000.00
29-Aug-12 KEPPEL CORP LTD 300 4 7-Sep-42 99.5 7-Sep-32    1,500,000.00
3-Apr-12 KEPPEL CORP LTD 300 3.8 23-Apr-27 99.728 23-Apr-22        816,000.00
3-Apr-12 KEPPEL CORP LTD 400 3.145 14-Feb-22 99    4,000,000.00

note : I used estimated market prices taken off the Bloomberg which may not be accurate.

I guess the recent 2042 deal was a bespoke issue with a firm anchor who probably intends to hold it for a long time. Yet I sometimes wonder what about the hapless people who were dragged into the deal by thecurrent  SGD corporate bond frenzy.

So the piranhas continue to attack our little pond. Another bespoke deal today (50 mio anchored) with Starhub (unrated) 10Y at 3.2%, a mere 1.5% over SOR which sort of assumes that mobile phone and TV contracts are longer than 2 years here. And Starhub does make Keppel 2022 look good now at 99 cts on the bid because 1. Keppel is over 3 times the market cap of Starhub but, 2. Starhub has higher percentage govt ownership.

That makes the OCBC 5.5Y USD Sub Debt  today look like a star ! and yet the audience seems to prefer Guocoland 5Y at 4.75%, barely covering CPI.

I know the casino charges an entrance levy for Singaporeans but there is really no need to treat corporate bonds like a roulette game.

Good luck with selling friends. At least we know MAS is on your side, they seem to be keen to keep the system flushed with liquidity and promising further appreciation of the SGD to foreign buyers.