SGD NEW ISSUE REVIEW : FRASER CENTREPOINT 7Y 4%
Sept. 29 (Bloomberg) — Pricing today.
• Issuer: FCL Treasury Pte Ltd
• Guarantor: Frasers Centrepoint Limited
• Unrated
• Reg S (off issuer’s SGD3b multicurrency debt program)
FRASERS CENTREPOINT LTD 7Y SGD – INITIAL PRICE GUIDANCE @ 4%
Issuer: FCL Treasury Pte. Ltd.
Guarantor: Frasers Centrepoint Limited
Rating: Unrated
Status: Senior, unsecured
Issue Size: SGD Benchmark
Distribution: As per Information Memorandum, Singapore selling restrictions under Section 274/275 of SFA
Format/Docs: Reg S Bearer / Issuer’s SGD 3 billion Multicurrency Debt Issuance Programme
Price Guidance: 4% area
Tenor: 7-Year
Denomination: SGD250K
Governing Law: Singapore Law
Listing: SGX-ST
Clearing: CDP
Early Redemption: Yes, at make-whole (SGD SOR+0.50%)
Selling Restrictions: Sections 274
I told you so…. less than 2 weeks ago !
THEY WILL BE BACK !! AND FOR ALOT MORE !!
“They are likely to be borrowing ALOT more after increasing their $1 bio medium term borrowing programme to S$3 bio just last week following their acquisition of Australand, a former subsidiary of Capitaland fully divested in Mar this year, down in Australia where they are on a building spree.” https://tradehaven.net/market/sgd-new-issue-review-fraser-centrepoint-ltd-perp-nc-5/
Why do we bother to sell a company to someone who will borrow money from you to buy it ?
Because that is exactly what a LEVERAGED BUYOUT means !
Fraser Centrepoint has been busy buying properties
I have said all I wanted to say less than 2 weeks ago.
So people ask me FCL 4% or …
1. Wingtai 4% 10/2021 – I pick Wingtai
2. Far East Horizon 4.25% 10/2019 – I pick Far East Horizon
3. Sabana Sukuk 4.25% 04/2019 – I pick Sabana
4. Guoco 3.95% 04/2019 – toss up between the 2
This is not the same Centrepoint that we know, you know ?
In the past months, it has bought over subsidiaries from TCC …
“14 Jul acquisition of operating entities from TCC Group, which will be master lessees and tenants of the six hotels in Frasers Hospitality Real Estate Investment Trust’s initial portfolio.Says acquisition of K.K. Shinkobe Holding (SKH) and P I Hotel Management Limited (PIHML) was completed.Following Completion, SKH and PIHML have become wholly-owned subsidiaries of FCL.” http://in.reuters.com/finance/stocks/FRCT.SI/key-developments/article/3028915
And they will be looking to expand aggressively into Europe.
“June 24 (Business Times) — [SINGAPORE] Frasers Hospitality is on a buying spree to grow its portfolio, even as it is injecting six serviced residences into a hospitality Reit to be listed next month.
It hopes to set up a private equity fund focused on acquiring assets in Europe, where yields are currently the highest among its existing markets.
Another wholly owned unit of Frasers Centrepoint Limited (FCL), Frasers Hospitality Global Limited (FHGL), is also gunning for more acquisitions – not just in serviced residences, but also in hotels, resorts and, down the road, retirement villages.”
FRASERS CENTREPOINT LIMITED 7YR SGD
– Books approaching SGD 300mm
– Final price guidance: 3.95% (the number)
– Issue Size: SGD 200mm (will not grow)
Latest Price
99.65/99.95
Dear Mr Tradehaven,
Kindly share where could we buy the bonds at the prices indicated in your web site.I find the proces quoted by OCBC signicantly higher than the prices here.
Many thanks.
Ray
Hi Ray,
Yes. That is because there is a mark up. Depends on whether you are with OCBC privilege, private or Bank of Singapore client.
I am thinking of a way we can all work together to help each other get the bonds at reasonable prices with bankers aiding us.
Mr Tradehaven,
We are a group who are keep to work with you to get the bonds at reasoble prices. Please email us your proposal.
Regards
Ray
When one buys clothes or food, do you ask the shop keeper what is the mark up for these items?
Why should one feel entitled to buy bonds at cost?
Depends on how you view the product.
If it is a generic product, there is price comparison and competition to rein in the price.
For bonds, it is mostly black box pricing and one person will not get it at the same price as another, a little like art or diamonds etc.
And the issue of cost is a also hugely debatable. What is cost ? It is somewhere between the bid-offer price, I am guessing. And the bid-offer spread is the mark up/down from the true cost.
As a newcomer to this website, I also had the same questions went through my mind as asked by Mr Ray Chai. I believe none of us is saying that we are entitled to buy bonds at cost. What we didn’t understand is why the bid-offer prices of the bonds reported in this website are considerably different from those quote by the banks. What we are asking is how or where we can buy or sell the bonds at the prices reported on this website. Pardon our ignorance, but we are rookies in this business. Thank you.
This is a global problem but some markets are getting better now.
Banks are profiting from investors who all lack knowledge and information on prices. Thus prices quoted to investors can vary greatly.
The more bank accounts you have the better, then you can check around for prices.
We are in the midst of a website overhaul but what you all can start doing is to use the forums to exchange price levels and we can feedback as well so everyone benefits.
How about for FX? The bid/ask is freely available yet the spread that is charged by the bank differs widely.
Depends on what “tier” customer you are and what sort of account a person has.
For cash notes, you can lock in interbank rates for the fx and transfer the money to a multicurrency account with a global bank and then withdraw cash from local ATMs when you travel.