SGD New Issue Review : Golden Agri 3Y over 4%
NEW ISSUE : GOLDEN ASSETS INTERNATIONAL INVESTMENTS PTE. LTD. SGD 3 YR SENIOR – PRICE GUIDANCE
ISSUER : Golden Assets International Investment Pte. Ltd.
GUARANTOR : Golden Agri-Resources Ltd
STATUS : Direct, unconditional, unsubordinated and unsecured Notes
ISSUE SIZE : TBD
DISTRIBUTION : As per Information Memorandum dated 4 April 2014 including the Singapore selling restrictions under Sections 274/275 of the Singapore Securities and Futures Act
FORMAT/DOCS : Bearer / Issuer’s SGD 1.5 billion Multicurrency Medium Term Note Programme
PRICE GUIDANCE : Mid 4% area
TENOR : 3-Year
INTEREST PAYMENT : Semi-annual, actual/365 (fixed)
ISSUE DATE : [●]
SETTLEMENT DATE : TBD
MATURITY DATE : [●]
DENOMINATION : SGD250K
GOVERNING LAW : Singapore Law
LISTING : SGX-ST
SELLING RESTRICTIONS: Sections 274 and/or 275 of the Singapore SFA
TIMING: As early as today’s business
** NEW DEBUT S$ 3YR SENIOR ANNOUNCED
** INITIAL PRICE GUIDANCE: Mid 4% area
*** Golden Agri-Resources: SGD Comps ***
WILSP 3.50% 01/25/2017 bid at 3.23% / Z+231 (100.7)
WILSP 4.10% 01/25/2019 bid at 3.93% / Z+227 (100.7)
STI Index stock. Market cap 7.77 bio.
3 year interest rates at 1.03%. Thus 4.5% is a 3.4% premium.
Hearing that the issue size will be SGD 100 mio out of their SGD 1.5 bio MTN programme.
They have SGD 1.57 bio worth of debt (including those of subsidiaries) outstanding in various currencies – MYR, USD, IDR.
Here is a list of the issues under Golden Agri.
|Issuer Name||Coupon||Maturity||Amt Issued(MM)||Curr||Bid Price||Ask Px||YIELD|
|Golden Assets International Finance Ltd||4.75||Aug-18||500000000||MYR||99.48||99.48||4.89%|
|Golden Assets International Finance Ltd||4.08||Mar-16||250000000||MYR|
|Golden Assets International Finance Ltd||4.35||Nov-17||1500000000||MYR||98.35||98.35||4.87%|
|Golden Agri-Resources Ltd||2.5||Oct-17||400000000||USD||98.288||99.2||CONVERTIBLE|
Golden Assets International Finance is rated Aa2 by RAMS (Rating Agency Malaysia Berhad) and Golden Agri-Resources Ltd is rated Ba2 by Moody’s.
I think they mean business with their accounts looking neat and leverage ratios way healthier than Wilmar and Olam, although I have not checked up on the “living assets”, like in Olam’s case (that got them into trouble).
This is a good start and a sound coupon, in my opinion. Comparing against Olam’s 5.75% 09/2017 which is going at USD 4.7%, they are almost on par in terms of credit premium (at 103. 23 cash price, Olam is paying 3.5% over the prevailing 3.5 year interest rate).
I would expect a good take up of this bond at the coupon level and hope they will keep the haze away this year.
What a terrible punchline it would be if the sales pitch went like….
Buy Some GGR Bonds Today and Invest In the Haze for Tomorrow !
GOLDEN AGRI-RESOURCES: UPDATE
ORDERBOOK IN EXCESS OF SGD275M
FINAL PRICE GUIDANCE OF 4.25% +/- 5bps (WILL PRICE IN RANGE)
TRANSACTION SIZE WILL BE SGD150M
BOOKS SUBJECT IN 10 MINS, PRICING SHORTLY THEREAFTER
Not sure if this is the best of buys..yield seems ok but my concern is regarding the corporate governance of the owners..remember Asia pulp and paper?
Hopefully STI stock has higher level of scrutiny.
Priced SGD 150 mio at 4.2%
Current mkt price 100.10/100.20