Bonds to Watch : Cashflow Ahead
Just read that Wilmar signs mandate for a $1.5 bio term loan and thought it was good news till I realise it was for their loan maturity this year.
Wilmar Says Unit Signs Mandate for $1.5 Bln Term-Loan Facility
July 10 (Bloomberg) — Mandate signed with Bank of Tokyo-
Mitsubishi, CIMB, UOB, DBS, HSBC and CBA, according to
• Loan facility for general corporate and working-capital requirements of Wilmar and units, according to statement
• Loan may be used to refinance existing debt, co. says
• Final documentation for facility being prepared and expected to be signed shortly, co. says
Even bigger one coming up in 2014 for 1.9 billion. Geez but Noble has 28 bio next year and probably praying for no taper.
I decided to dig up the companies with short term debt >50% of market cap just for comparison and the average duration of their total debt. Numbers are not verified because I do not know what to make of the Indofood Agri number (** just been informed that the ST borrowing of IFAR is likely to be an IDR number against its market cap in SGD).
Those highlighted have outstanding bonds.
Short term borrowings are typically defined as bank overdrafts, short term debts, short term portion of long term borrowings, obligations under leases/hire purchase etc.
In the eventually of a Fed taper, we are likely to see credit funding conditions less than ideal thus posing a risk for borrowers.
Just some information for the readers to note.