SGD New Issue Review : MAGIC 7Y 3.5%
MAPLETREE GREATER CHINA COMMERCIAL TRUST 7Y SGD: PX GUIDANCE @ 3.5% AREA
* NEW 7YR SGD ANNOUNCED DRIVEN BY REVERSE ENQUIRY
* PRICE GUIDANCE AT 3.5% AREA
* AS EARLY AS TODAY’S BUSINESS
Mapletree Commerical Trust Baa1 S$100M 3.25% 2023 @ 101.35 3.06% I+86
MAGIC Baa1 S$75M 3.20% 2021 @ 100.20 3.17% I+108
3.5% is not bad.
Last August we only saw 3.2% coupon and 7 year interest rates are barely 0.08% higher since.
Our review of the previous bond : https://tradehaven.net/market/sgd-new-issue-review-mapletree-greater-china-commerical-trust-7y/
Singtel (Aa3) came out 2 days ago at 2.72% for a 6.5 year paper and we saw a 30Y government bond auction that delivered a 1.5% windfall to investors yesterday (priced at 97.93 vs current market price 99.50).
Mapletree Greater China share price is also looking good, finally breaking back above $1 this year and at its highest since June 2013 after its IPO in Mar 2013.
Indicated dividend yield is 6.08% but analysts are turning neutral on the stock.
Why does MAGIC look good today then ?
Because of this.
7 year interest rates have collapsed by 0.2% since Humphrey Hawkins.
But 3.5% is still the decent sort of absolute return that portfolios are looking at these days for a non junk name.