SGD New Issue Review : HDB 10Y 3.10%
NEW ISSUE – HOUSING DEVELOPMENT BOARD 10Y SGD @ 3.10%
ISSUER: Housing and Development Board
FORMAT: S274 & 275 and Reg S Bearer, Fixed Rate Notes (off Issuer’s S$32bn Multicurrency MTN Programme)
STATUS: Fixed Rate, Senior Unsecured
ISSUE SIZE: SGD600MM (with option to upsize)
SETTLEMENT DATE: 24 July 2014
MATURITY DATE: 24 July 2024
COUPON DATES: 24 July and 24 January
ISSUE PRICE: 100.00
COUPON:3.10% s/a, ACT/ACT, Following Business Day Convention, 60 bps above 10yr SOR
DETAILS: S$250k x S$250k / MTN Prog / SGX-ST / Singapore Law
JOINT BOOKS: CIMB/DBS/ HSBC/OCBC/UOB
HDB issues done in past 2 years and their credit premiums and prices.
HDB is finally tightening up. 0.60% for 10 years after their last issue in May that paid 0.58% for 5 years.
10Y government bond maturing in 09/2024 (official benchmark 10Y matures in 07/2023 is at 2.25%) is delivering 2.42% and US 10Y note yield at 2.51% is at a 2 month low.
Not sure if its corny that HDB’s 60th issue pays 60 basis points but I say it is not bad.
LV should be 80% or so. I have been bullish HDB bonds since last year.
Their 15 year issue earlier in Jan is probably the best performing corporate bond for 2014.
10Y at 3.1% ? makes the UOB 3.5% SUBORDINATED paper, callable in 2020, look bad at 3.23% (less leverage for that one too).
But again, this HDB will not be actively marketed because there is no private banking rebate unless they sell you above 100.