SGD Issue Reopening : Perisai 6.875% 10/2016


Issuer:  Perisai Capital (L) Inc.
Guarantor:  Perisai Petroleum Teknologi Bhd
Status:  Fixed Rate, Senior, Unsecured issued off  SGD700 million Multicurrency MTN Programme
Rating:   Unrated
Format: Reg S, Bearer
Reopening Issue:  Reopening of 6.875% Fixed Rate Notes Due 3  October 2016 (ISIN: SG57J6997255)
Tap Size: SGD [TBD] million
Maturity: 3 October 2016
Initial Price Guidance:  100.00 area
Settlement Date: [●] July 2014, will funge immediately
Issue Price:  [●] per cent. plus accrued interest from   3 April 2014 (including) to [●] July 2014   (excluding)
Payment:  Semi-annual, actual/365 (fixed)
Redemption at Option of Noteholders upon Cessation or Suspension of
Trading of Shares:  In accordance with the Programme
Redemption for Taxation Reasons:     Yes, in accordance with the Programme
Details:  SGD250K/Multicurrency MTN                                                       Programme/Singapore Law/CDP
Listing: SGX-ST

– Perisai Reopening of 6.875 2016 announced. Deal is strongly anchored.
– Initial price guidance at 100.00 area

Perisai 6.875 2016 – 100/100.45, 6.86%/6.65%
Ezra 4.75 2016 – 100.90/101.35, 4.18%/3.91%

Wrote about them in Sep last year. Do take a read at

I could not fathom, then, how they only managed to raise SGD 23 mio at that time. My analysis then was that it was  “mainly because it was not marketed in the street and many a clients missed hearing of its launch. And it is regrettable that most retail only got to see the overpriced Lippo Malls issue which I am hearing is awarded leverage to make its low yield more palatable.”

Thus it was an issue of timing and after 10 months, the Singapore market is ready to buy anything above 6%.

The 3 year swap rate is now 1.01% but the bond has only 2.25 years left to run.

In terms of credit, it is a better deal now because the bond is yielding 6.16% over the 2.25 year interest rate whereas when it was launched last year, the credit spread was just under 6%.

Given its affiliation with Ezra, I see opportunity for a switch out of Ezra (and or Swiber and or the rest of the names you may bucket in with this lot) into Perisai.

Good luck.