Note : 3 Year SGD Interest Rate is 0.91% today. The 1 year high was 1.16% on 6 Sep. One observation, the tenors are getting shorter and shorter (remember Ezra and the 1Y reopening ?? quite hard up)



ISSUER: GUARANTOR: Perisai Capital (L) Inc. Perisai Petroleum Teknologi                            Bhd
RATINGS: Unrated
STATUS:  Fixed Rate, Senior, Unsecured issued off SGD700 million Multicurrency MTN Programme
INITIAL GUIDANCE: TENOR:  6.875 % area pa, semi-annual, actual/365 (fixed)  3 Years
LISTING: Singapore Exchange Securities Trading Limited
CLEARING: The Central Depository (Pte) Limited
FORMAT: Reg S, Bearer
GOVERNING LAW: Singapore Law

Malaysian listed company which EZRA has a 25% stake in.

— Leading growing offshore services player based in Malaysia with diversity across multiple asset classes (FPSO, OSV, MOPU, DLB, Rigs) in the oil and gas value chain from exploration to development to production stages
– Perisai has strong shareholders with Malaysia’s Employment Provident Fund holding 6% and Ezra holding 26%. Largest shareholder Ezra is a global oil and gas service provider with broad expertise in the upstream supply chain.
— As one of the few Malaysian players in the offshore production and drilling segments, Perisai is expected to benefit from government policies giving preference to Malaysian oil and gas asset owners and operators
— Well positioned to capitalized on Malaysian ETP programme which focuses on development of marginal fields and deepwater fields – part of Petronas USD60 bn capex program and which favours Malaysian based offshore services player given preferential status
— Stable and expanding cash flows with key assets chartered on long-term basis such as OSV assets chartered till 2015 and FPSO asset chartered till 2016 with additional cash flow growth from two high-end jack-up rigs ordered from Sembcorp Marine
— Strong and credible customer base including Petronas, Hess, Ezra among others with no payment default history
— Robust and financial position with one of the highest profitability margin (FY2012 EBITDA margin of 86%) and one of the fastest growing profitability base (FY2012 EBITDA growth of 8.8x vs previous year)

Comments : Would not say the pricing is unfair. Afterall Ezra 5% 09/2015 is going at 5.1% now and Ezra 4.875% 04/2018 is going at about 6%. This is not an Ezra credit, by the way but they are dependent on them for business. Ezra is apparently going to get an additional stake on top of their 20% after giving them a FPSO (floating production storage & offloading vessel).

” A strong working relationship with the Group’s largest shareholder Ezra, a well-established company listed on the SGX-ST and a global oil and gas service provider, broadens the Group’s future opportunities, given Ezra’s expertise in various levels of the oil and gas upstream supply chain, such as subsea engineering and construction. The Group believes that it will be able to leverage on Ezra’s position as one of Asia’s leading offshore support and
marine services provider.” taken from the OM

Nothing majorly wrong with their accounts except a shortage of cash at hand and a chunky 500 mio amount of “other current assets” that appeared out of nowhere. And I also wonder why they choose to tap the SGD market when the onshore MYR market should be a cheaper alternative (unless we do not know something about the situation there)

At 6.875%, it is a more than good alternative to all the other 3 year SGD names out there like Raffles Education, Oxley and gang. Similar risks : ILLIQUID and LACK OF PRICING IF YOU NEED TO SELL.



Issuer:  LMIRT Capital Pte Limited (“Issuer”)
Guarantor:   HSBC Institutional Trust Services (Singapore) Limited (in its capacity as trustee of Lippo Malls Indonesia Retail Trust)
Ratings: Unrated
Format: Regulation S Bearer
Status: Fixed rate, Senior Unsecured
Tenor: 3 Years
Issue Size: SGD 150 mm (will not grow)
Initial Guidance:  4.250% area (s/a, ACT/365)

It is a pity LMIRT is coming out at a time when PPT above is dangling the 6% carrot.

Always thought they were expensive. I mean these are Indo malls and their yields are crazy there. So I guess it is because Singapore is cheaper.

LMRTSP 4.48 28-Nov-17 75 mio SGD 99 100 4.75% 4.48%
LMRTSP 4.88 6-Jul-15 200 mio SGD 101 102 4.28% 3.70%
LMRTSP 5.875 6-Jul-17 50 mio SGD 102 103 5.28% 4.99%

The issue I have with them is that there is no liquidity for their papers and as you can see, the secondary market is trading wide and quoting 1 ct spread for indication i.e. you may not get a bid.

So is 4.25% enough for that illiquidity premium ? And they will probably be back for more soon. (MTN size SGD 750 mio)

I am not sure. I think Suntec Reit (rated Baa2) could come close.

And by the way, I heard Aspial did a retap yesterday for SGD 25 mio. No SGX announcement on that one, I think. Quite sneaky.

“A debt issuer must immediately disclose to the Exchange via SGXNET any information which may have a material effect on the price or value of its debt securities or on an investor’s decision whether to trade in such debt securities”

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