SINGTEL USD 10Y NEW ISSUE

*** SINGTEL NEW US$ 10-YEAR: GUIDANCE T+110 AREA ***

Issuer: Singtel Group Treasury Pte. Ltd.
Guarantor: Singapore Telecommunications Limited
Guarantor Ratings: Aa3 stable by Moody’s / A+ stable by S&P
Exp Issue Ratings: Aa3 stable by Moody’s / A+ stable by S&P
Format: Reg S registered (off MTN Programme)
Status: Fixed rate, Senior unsecured
Size: US$ Benchmark
Tenor: 10 Year
Guidance: T+110 Area
Details: US$200k/1k denoms; Listing: SGX; English Law
Joint Books: Citi / HSBC / Mizuho Securities / Morgan Stanley
Timing: As early as today’s business

Indic Yield  : 3.475%

5 new issues in 2015. 0 new issues in 2014. 1 new issue in 2013. 1 new issue in 2012. 6 new issues in 2011.

Bond and loan maturities :
2016 SGD 250 mio
2017 SGD 3.18 bio
2018 SGD 374 mio
2020 SGD 750 mio
2021 SGD 953 mio

Still a rare name to come by and I suspect the new issue is more due to the pressure to join in the global issuance fray that we have seen from the likes of Telstra and Petronas etc.

10Y spread of Libor + 1%, compares well against their recent SGD 5.5Y issue that is giving a spread of SOR+0.35% and their Optus (1 notch lower) 7Y AUD issue that is giving a credit premium of about 1.25%.

Not to mention the 10Y Singtel USD Senior Credit Default Swaps at approx. 0.64%.

Comparables

Temasek USD 2.375% 01/2023 at 2.58% rated AAA/Aaa
Telstra USD 3.125% 04/2025 at 3.45% rated A2/A
Petronas USD 3.5% 03/2025 at 3.56% rated A1/A-