SGD New Issue Review : HDB 10Y 3.10%

NEW ISSUE – HOUSING DEVELOPMENT BOARD 10Y SGD @ 3.10%

ISSUER: Housing and Development Board
RATING:  Unrated
SERIES: 60
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)
TENOR:10 Years
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
CLEARING: CDP
JOINT BOOKS: CIMB/DBS/ HSBC/OCBC/UOB

 

HDB issues done in past 2 years and their credit premiums and prices.

HDB SPREADS

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.

My last post on HDB. https://tradehaven.net/market/sgd-new-issue-review-hdb-5y-2-223-vs-deutsche-bank-eurusdgbpat1/