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.