SGD New Issue Review : MAPLETREE COMMERCIAL TRUST SGD 8-YR
** NEW ISSUE: MAPLETREE COMMERCIAL TRUST SGD 8-YR – INITIAL GUIDANCE 3.3% AREA **
ISSUER: Mapletree Commercial Trust Treasury Company Pte. Ltd.
GUARANTOR: DBS Trustee Limited (in its capacity as trustee of Mapletree Commercial Trust)
STATUS: Direct, unconditional, unsubordinated, unsecured Notes
ISSUER RATINGS: Baa1 / – / –
EXPECTED ISSUE RATINGS: Baa1 / – / –
ISSUE SIZE: TBA
FORMAT/DOCS: Bearer / Issuer’s SGD1 billion Multicurrency Medium Term Note Programme
INITIAL PRICE GUIDANCE: 3.30% area
INTEREST PAYMENT: Semi-annual, actual/365 (fixed)
ANNOUCNEMENT DATE: 23 January 2015
GOVERNING LAW: Singapore Law
SELLING RESTRICTIONS: As per Information Memorandum dated 8 August 2012, including the Singapore selling restrictions under Sections 274/275 of the Singapore Securities and Futures Act
This is what the 8 year interest rate curve looks like. We are at an 18 month low.
A credit premium of 1.415% for 8 years is much better than the 1.15% Mapletree Greater China (rated Baa1) paid last year for their 7 year 3.2% 09/2021 issue and the 1.32% Capitaland (unrated) paid for their 10 year 3.8% 08/2024 issue.
I also recall about a year ago, Capitamall Trust (A2) paid just 0.96% premium for their 7 year retail bond issue to give a coupon of 3.08%.
In all a fair spread for an investment grade paper regardless of the current interest rate.