SGD New Issue Review : Wing Tai Holdings 7Y 4.25%

WING TAI HOLDINGS

– New SGD 7YR transaction announced with initial guidance of 4.25% area and anchored on the back of very significant reverse enquiries from institutional accounts.
– Issue Size of SGD 120 million (capped)

COMPARABLES
WINGTAI HOLDINGS 4% 07/18       103.45 3.06%
WINGTAI HOLDINGS 4 ½% 09/22    101.50 4.27%
WINGTAI HOLDINGS 4 ¼% 03/23    99.10 4.38%
WINGTAI HOLDINGS 4.7% 02/24     100.75 4.60%

Ugly revenues.

WINGTAI REVENUES

Not overly leveraged and not expanding aggressively like Guoco which makes it a better credit which is the reason for its tighter coupon.

7 year interest rates at 2.25% today which give us a nice credit premium of 2%.

They did a 100 mio 10 year 4.7% issue earlier this year which I had missed and not not regular issuers these days having come a long way from their over leveraged days. https://tradehaven.net/market/bonds/new-issue-review-wing-tai-holdings-limited-sgd-10y/

Wingtai is a household name and most fund managers know them well. I applaud their strategy of sitting this property downturn out much like Capitaland (10 year at 3.8 %) and CDL are doing.

This bond should go down pretty well with investors with its magic 4% handle that is a leap and mile safer than the FCL perp, imo and offers a big pick up over the Lend Lease (Jurong Mall) unrated issue.

I got to run for a Rosh Hashanah lunch !

Happy Rosh Hashanah to all !