New Issue Review : Wing Tai Holdings Limited SGD 10Y

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Sounding out at 4.35% cpn for 10Y.

This company has come a long, long way from the time when I was involved in pricing their bonds.

They disappeared from the issuance radar, wisely, for 4 years before coming back with a vengeance after the crisis.

Coupon Maturity Curr MID PRICE AMT YIELD
Wing Tai Properties Finance Ltd 3.95 25-Jan-23 HKD n/a 480 MIO
Wing Tai Properties Finance Ltd 4.25 29-Nov-22 SGD 100.25 170 MIO 4.22%
Wing Tai Holdings Ltd 4.5 26-Sep-22 SGD 101.925 100 MIO 4.27%
Wing Tai Holdings Ltd 4 27-Jul-18 SGD 101 60 MIO 3.75%
Wing Tai Holdings Ltd 3.38 27-Jul-16 SGD 100.58 65 MIO 3.20%
Wing Tai Holdings Ltd 3.3 26-May-16 SGD 102.125 120 MIO 2.31%

Amazing changes in their balance sheets, which is hard to fault and sitting on a sizeable cash pile and running financial ratios that would put Capitaland, Guocoland and HPL  in poorer light (apologies for the blasphemy).

So is 4.35% fair for 1o years ? The 10Y paper they did in Sep 2012 is going at 4.27% now.

Comparables.

Capitaland 4.3% 08/2020 3.53%
CMA 3.7% 08/2022 at 3.50%
Wingtai Properties 4.25 11/2022 4.20% (not Wingtai Holdings)

Their MTN programme is SGD 500 mio. Current oustanding SGD 345 mio, so this issue cannot be more than 155 mio.

The tenor of 10Y will prove to be the hard sell given the jitters in the past month on the end of easy money, the PB rebate is not too hot so I don’t expect bankers to be chasing hard to close the deal unless they charge you above 100.00.

Pricing is fair and I will not let them wrangle more than 10 bp from me to give me under 4.25%. This is 10Y money we are talking about.

Have a nice day.

Category : Rates/Bonds
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