SGD New Issue Review : Swissco 3.5 Years 6%

Swissco to Sell SGD 3.5Y Bonds

Oct. 8 (Bloomberg) — May price today.
• Issuer: Swissco Holdings Ltd.
• Not rated
• Expected issue size: S$80m – S$100m

Market Cap : SGD 678 mio
Swissco Holdings Ltd. is an offshore oil and gas marine services provider.  The Company provides marine logistics-related assets, which comprise mainly of vessels, as well as associated offshore vessel chartering and marine logistics and support services.  Swissco also provides logistics outsourcing

Saw a 5 year high in stock price for the last quarter which means it is good time to ISSUE SOME BONDS !


I somehow have a mental disconnect between the Swissco company name (changed in Sep 2010 from C2O Holdings to Swissco Holdings) and the fact that they are not making winter Olympic apparel. Possibly F&B business or even watches ?

List of competitors.


The financials are in pristine shape mostly, having recently turned profitable and transferring to the main board of the SGX after spending about 9 years in Catalist (SESDAQ).

swissco revenues

Financial Leverage 2 times (ASL Marine & Ezra & Ezion  all 2.9X ). More than enough revenues to cover interest and Debt/Equity of 70%.

A little weak on the liquid assets side of things, without only 0.5 times to meet current liabilities which is the reason for this bond issue, I guess.

They are in a phase of rapid expansion buying the first liftboat (boat with a LIFT) for SE Asia and another 4 rigs.

Yes they need money but the good thing so far is that their MTN programme is $300 mio, quite small if we compare with Vallianz and Swiber and gang.

Warning : Cheap money can be addictive. Look at Swiber.

Risks : The usual vulnerability to contract delays and cancellations. Eg. ASL Marine’s income fluctuation earlier this year on their delay which led to the cancellation of an order.

Comparing this bond to ASL Marine’s 4 year at 5.35% ??? (indicated at 99.30/99.80  5.55/5.41%)

Not good … errrr, for ASL.

This bond should be an easy sell, I guess. The PB rebate is a nice one in such turbulent times.

Good luck !