SGD New Issue Quick Review : Starhill Global REIT MTN SGD 7Y 3.5%

ISSUER :   Starhill Global REIT MTN Pte. Ltd.
GUARANTOR :   HSBC Institutional Trust Services (Singapore) Limited (in its capacity as trustee of Starhill Global Real Estate Investment Trust)
STATUS : Direct, unconditional, unsubordinated and unsecured Notes
EXPECTED ISSUE RATING :BBB+ (S&P)
ISSUE SIZE : TBD
DISTRIBUTION :  As per Information Memorandum dated 9 June 2010 (as supplemented by the Supplemental IM dated 17 February 2014), including the Singapore selling restrictions under Sections 274/275 of the Singapore Securities and Futures Act
FORMAT/DOCS : Bearer / Issuer’s SGD 2 billion Multicurrency Medium Term Note Programme
PRICE GUIDANCE :  3.50% area
TENOR : 7-Year
INTEREST PAYMENT : Semi-annual, actual/365 (fixed)
DENOMINATION : SGD250K
GOVERNING LAW : Singapore Law
LISTING : SGX-ST
CLEARING:  CDP
SELLING RESTRICTIONS:  Sections 274 and/or 275 of the Singapore SFA

Comps:
SUNSP 3.35% 2/2020 100.30 3.297%
MCTSP 3.60% 8/2020 101.60 3.325%

A BBB+ company run by Ho Sing (PM’s bro in law) and owned largely by YTL Corp.

I usually do not have much to say about Reits that are well governed and rated except about the pricing, which in this case, is fair enough compared to Suntec Reit’s 6Y paper 2 weeks back at 3.35% (trading at 3.33/3.25% today)

The 7Y interest rate is 2.15%.

It looks about right until you realise that HDB 2021 papers are all going above 3% and they are implicitly rated AAA too.

 

Ps: Sorry for the delay in this one. Had my braces off finally and entire market is talking about the trader suicide in HK. http://www.scmp.com/business/banking-finance/article/1430296/man-leaps-death-jp-morgans-headquarters-central