SGD New Issue : PCRT 3Y SGD
July 19 (Bloomberg) — According to a person familiar with
the matter.
Issuer: Perennial China Retail Trust Management
Guarantor: Perennial China Retail
Status: Senior, unsecured
Format: RegS, Bearer
Tenor: 3 yrs
Initial Price Guidance: Mid 5% area
Bond Issue Size 50 mio. Books >100 mio. Anyway I am late. The books are closed already.
5.25% coupon almost confirmed.
PCRT is a business trust and not a reit.
Reits are subject to a gearing limit of 35 per cent. This can be raised to 60 per cent if the Reit obtains, discloses and maintains a credit rating from rating agencies. There is no explicit cap on borrowings for business trusts but the trusts themselves may set their own limits.
At 5.25%, I am hardly enthusiastic. PCRT is a 2nd/3rd tier developer and reports are advising caution.
Good BB rated chinese developer names’ USD bonds are going >6% these days for 3 years in SGD terms.
Agreed. I’m vested in PCRT due to their high DPU (ending soon though) unless their developments pick up. Recently I went to visit their malls in China on a weekday – it was EMPTY! Same thing for Raffles City Chengdu, they have a food court similar to SGP and it was virtually empty during weekday lunch time.
That is what they means by ghost cities.
But the Chinese govt wants to expand the hukou’s these days and move 70% of the population into cities. I guess it is a long term investment.