SGD New Issue : Help ! Oxley Is Back !

** Oxley Reopening SGD 4.75% 5NC3 Notes due 11 July 2018 – Update #1 **

– Oxley announced the reopening of the existing 4.75% 5NC3 Fixed Rate Notes due
11 July 2018 on the back of reverse enquiry

– Reopening price at 100.00% plus accrued interest since 11 July 2013

They are MAXING OUT ! of their entire SGD 300 million MTN.

July 15 (Business Times) — OXLEY Holdings continues on its
overseas expansion trail, this time buying another site in Phnom
Penh, Cambodia…..for about US$11.26 million

So they go and raise another 50 mio SGD for that.

They are already running at 9.1 times leverage ie. total assets/total equity = 9.1  times, that is all funded by borrowings which makes sense for a companies that are majority owned and do not want to see equity dilution.

I said it before SGD New Issue Review : Oxley 5Y callable 3Y ( just 2 weeks ago. The opinion stands.

MAS should make bankers take an additional integrity test if they want to sell bonds. Bankers should swear on oath that they would willingly market the same bond to their family members and loved ones.

And it is timely that all of us on the UBS mail list will have read this piece sent this morning.

“We recommend that investors use current tranquility in the market to review exposures and trim positions if overly exposed. Remaining holdings should lean toward state-owned developers and BB credits.”

Years back in 2001, I remember an incident in a certain banking hall, in a bank near mine where a customer threw a chair through a window for some misadvice he claimed he was given.

No prizes for guessing the bank.