SGD New Issue : Another day, Another Swiber 5Y 6.5%


Issuer:  Swiber Capital Pte. Ltd.
Obligor: Swiber Holdings Limited (“Swiber”)
Wakeel: Swiber Holdings Limited (in its capacity as agent (wakeel) of the Issuer
Status:  Direct, unconditional, unsubordinated and unsecured Trust Certificates
Rating: Unrated
Issue Size:  SGD150 million
Series Islamic Principle: Wakalah Bi Al-Istithmar
Use of proceeds:  Mainly for refinancing existing borrowings and remaining for financing working capital and general corporate purposes of Swiber and its subsidiaries
Format: Reg S, S274 & S275 of Singapore SFA
Tenor: 5Yr
Initial Price Guidance:   6.50% area, p.a.
Payment:  Semi-annual, Actual/365
Listing: SGX-ST
Details: SGD 250,000 / Multicurrency Islamic Trust                                       Certificates Issuance Programme / Singapore Law
Clearing: CDP
Series Shariah Adviser:   Maybank Islamic Bank Berhad

News hit last month.

SWIBER HOLDINGS LTD: Singapore’s offshore oil and gas
engineering company plans to sell S$150 million ($119 million)
of five-year Shariah-compliant debt via private placement, its
first sukuk offering, according to a person with knowledge of
the deal.
(Added June 5. News: SWIB SP)

Not sure if the private placement went through and this is on top of that ?

Now we have a public issue.

I just realised their MTN programme is SGD 1 bio and their Sukuk MTN programme is SGD 500 mio. (Mkt Cap SGD 460 mio)

My doubts are as follows.

  • Swiber has SGD 230 mio due in debt this year and another SGD 165 mio.
  • Swiber raised SGD 160 mio in April 4Y at 7.125%. Now they need another SGD 150 mio.
  • 2012 total issuance SGD 400 mio of which SGD 150 mio is due in 2013.
  • Mkt cap SGD 460 mio. Their Financial leverage i.e. Assets/Capital = 4.3 times.
  • As of 2012, EBIT/Int Exp was 2.2 times i.e. half their profits go to paying interest.

Having said all that, it is fully placed out which means there are anchor investors and latent demand. And a timely headline that they had just won a contract worth US$435 mio.

But for the retail, the Swiber 7.125% is still going at 101.25/102 i.e. 6.735/6.505%.

List of Swiber Bonds.

Coupon Maturity Bid Price Ask Px
Swiber Holdings Ltd 7.125 18-Apr-17 101.25 102
Swiber Holdings Ltd 9.75 PERP 93 95
Swiber Holdings Ltd 5.8 6-Aug-13 100 100.3
Swiber Holdings Ltd 7 6-Jul-16 101.75 102.5
Swiber Holdings Ltd 6.25 8-Jun-15 100.5 101.3
Swiber Holdings Ltd 5.9 25-Jul-14 100.25 100.8
Swiber Holdings Ltd 5.8 11-Oct-13 100.15 100.7
Swiber Holdings Ltd 5 16-Oct-14 109.132 110.6

This deal is good for the secondary Swiber bonds and will be supportive of prices going forward.


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