SGD Bond Reopening : Golden Agri Resources 5.5% 2018

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GOLDEN-AGRI RESOURCES 5.5% 27/04/18 – REOPENING @ 100.75

ISSUER:  Golden Assets International Investment Pte. Ltd.
GUARANTOR:   Golden Agri-Resources Ltd
STATUS:Direct, unconditional, unsubordinated and  unsecured
ISSUE RATING: Unrated
FORMAT/DOCS:   Registered / Issuer’s USD1.5 billion  Multicurrency Medium Term Note Programme
REOPENING ISSUE: Reopening of SGD125 mil 5.50% 3-Year Fixed Rate    Notes due 2018 (GGRSP 5.5% 27/04/18, ISIN:   SG6WG700009)
REOPENING PRICE:   100.75 per cent, plus accrued interest from and  including 27 April 2015 (including) to 27 May 2015 (excluding)
INITIAL ISSUE SIZE:   S$125 Million
REOPENING SIZE:   TBD
FINAL ISSUE SIZE:  TBD
DETAILS:  S$250K x S$250K / SGX-ST / CDP / Singapore Law
COC REDEMPTION:  Yes, at par
INTEREST PAYMENT:   Semi-annual, actual/365 (fixed)
SETTLEMENT DATE: 27 May 2015, the new notes will be fungible   immediately
MATURITY DATE: 27 April 2018
SELLING RESTRICTIONS:  In accordance with the Programme
SOLE LEAD MANAGER/BOOKRUNNER:  Oversea-Chinese Banking Corporation
TIMING:  As early as today

– Reopening of the existing 5.5% 27/04/18 announced at 100.75 (the number) cash price following strong reverse enquiry interest.
– Expect reopening size of circa. S$75million
– Today’s Business

COMPS (at yesterday’s close)
GOLDEN AGRI 5.5%  04/27/18    101.00/101.50, 5.127/4.943%

Last month’s write up : https://tradehaven.net/market/sgd-new-issue-review-golden-agri-resources-3y-mid-5/

21 April 2015 “Golden Assets International Finance Ltd was Downgraded by RAMS (Rating Agency Malaysia Bhd) in Feb this year to Aa3 (prev Aa2) with a Negative Outlook. Moody’s last rated parent, Golden Agri-Resources, Ba2 back in 2012………………….” https://tradehaven.net/market/sgd-new-issue-review-golden-agri-resources-3y-mid-5/

Since then.

Worst Asian Default Forgiven as Indonesia Billionaire Sells Debt

(Bloomberg) — Foreign investors have either forgiven or forgotten the events that involved the billionaire Widjaja family in Asia’s worst corporate default.
  Companies backed by 91-year-old Eka Tjipta Widjaja, Indonesia’s fourth-richest person, received orders twice the size of two bond issues last week at yields below the average of Asian junk-rated peers. Developer PT Bumi Serpong Damai raised $225 million from a debut sale of U.S. dollar notes. Golden Agri-Resources Ltd., the world’s second-largest palm-oil producer, issued S$125 million ($94 million) in its third sale in a year. The family is also preparing a bid for an Indonesian coal producer in the midst of a dollar-debt restructuring. http://www.bloomberg.com/news/articles/2015-04-27/worst-asian-default-forgiven-as-indonesia-billionaire-sells-debt
The real reason ?
14 May 2015
  Indonesia’s agricultural conglomerate Sinar Mas Group and British financier Nat Rothschild are locked in a takeover battle for Asia Resource Minerals, a debt-laden investment company that owns a major coal producer locally.
  Asia Coal Energy Ventures, an investment vehicle set up by Sinar Mas and Argyle Street Management, a Hong Kong-based shareholder of Asia Resource, on May 7 announced a formal acquisition offer valuing the company at $151 million. It is also planning to inject $150 million into Asia Resource to pay down debt.

     Asia Coal Energy is offering to buy the rest of Asia Resources that it does not already own at 41p per share, which represented a 173.3% premium to the stock’s closing price on May 6. It now owns 4.65% in Asia Resource. http://asia.nikkei.com/Business/Companies/Indonesian-conglomerate-Rothschild-in-battle-for-troubled-coal-miner

And investors cannot get enough of Sinarmas (Golden Agri) at 100.75 (5.22%) !
Books are >$75 mio as I type.
In any case, do note that Golden Agri will qualify for retail bond issuance in the future under the “Exempt Issuer” scheme, so we better get used to seeing them around and no doubt, if they offer bonds to the general public, chances are they will be even less discerning ?

 

Category : Market, Rates/Bonds
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