Issuer: Trafigura Beheer B.V.
Securities:  SGD Perpetual Resettable Step-Up Subordinated Securities
Rating: Not rated
Status:  Subordinated unsecured
Maturity: Perpetual NC5
Size: SGD benchmark
Initial price thoughts:     Mid 7% area
Call Options:  2019 and on any interest payment date thereafter at par
Interest Rate: Fixed rate of [TBC]% until 2019, reset thereafter every 5 years based on 5yr SGD swap offer rate plus initial credit spread
Step Up: 100 bps in February 2024
Optional Interest Deferral: Optional, subject to certain conditions including non-payment of dividends in the preceding 12 months; cumulative and compounding Special Event Call Options: Special issuer redemption right for withholding tax event and minimal outstanding amount at par, and income tax deduction and accounting events at 101%
Governing Law: English (Dutch law for subordination provisions)
Offering Restrictions: Reg S, S274 & 275 of Singapore SFA
Interest Payments/Basis:    Semi-annual / Actual/365 (Fixed)
Denoms: SGD250k X SGD250K
Listing: SGX-ST
Clearing: Euroclear / Clearstream
Use of Proceeds: General corporate purposes and investments

I have never heard of this company until today.

Trafigura Beheer BV sources, stores, blends, and delivers oil and key raw materials. The Company trades crude oil, petroleum products, renewable energies, metals, metal ores, coal, and concentrates for industrial consumers. Trafigura Beheer operates worldwide.

It is a privately held company and third largest private company trading in oils and metals.

There are 3 outstanding bond issues.

Trafigura 5.25% 11/2018 Senior EUR 500 mio 103.78/104.23 (4.35/4.25 %) 339/330
Trafigura 7.625% Perp USD 500 mio 101.00/101.50 (7.62/7.20 % to call in 04/2018) last traded 102.25 before this new issue announcement.
Trafigura 6.375% 04/2015 Senior EUR 400 mio 103.58/104.00 (3.14/2.76 %)

This SGD perp is priced to sell at mid 7% which is the PB sweet spot. Current 5 year interest rates 1.55% which gives this bond a 6% premium on average.

Privately held companies are not favoured but with 4 banks in the deal, we would hope to see decent pricing support in the future.

I would not tend to compare it to the last flop we saw in Singapore for Odfjell back in 2006 which has thankfully matured with virtually non existent secondary volume. Some folks see a comparable in Olam Perp which is going at 88.25/89.25 ( 11.71/11.28 % to call in 03/2017) or Noble USD Perp trading at about 8.16% to call in 11/2015.

As for me ? I can think of quite a few other names to buy if we are going to be heading into perp space. Still this one is not disadvantaged as far as its other issues are concerned and we would be seeing a coupon refix premium of 6%.

CapitaMall Trust Offers S$200m 7-Year 3.08% Retail Bond

Feb. 10 (Bloomberg) — Co. to issue S$150m of retail bonds
to the public and S$50m to institutional investors, according to
a statement to the Hong Kong stock exchange.
• The issue size may be increased to S$350m
• Offer period: Feb. 11-Feb. 18

Current 7 year interest rate 2.13%. The company is rated A2 and Moodys has announced that the issue would bear the same rating.

They last did a SGD 7Y institutional issue in December 2013 at 3.15% when 7Y interest rates were at 2.155%. The secondary price for Capitamall Trust 3.15% 12/2020 is at 98.22/98.57 ( 3.44/3.38 %).

Do make a distinction between this bond and the Capitamalls Asia Treasury 3.8% 01/2022 (callable 01/2017) which is trading at 102.92/103.56 (2.75/2.52 %) which is also a retail bond quoted on the SGX. The latter is a separately listed entity which is unrated.

This is a decent coupon for a retail tranche even if you can buy the Capitamall 3.15% 12/2020 at 3.38%. Retail investors have little choice and I am expecting this issue to be well received.