SGD NEW ISSUE : ASCENDAS REIT SGD 5YR 2.95%

NEW ISSUE: ASCENDAS REIT SGD 5YR – FPG @ 2.95% (the number) **

ISSUER:  HSBC Institutional Trust Services (Singapore) Limited,  in its capacity as trustee of A-REIT
STATUS:  Direct, unconditional, unsecured and unsubordinated Notes, issuance off the S$5 billion Multicurrency Medium Term Note Programme dated 2 March 2015
ISSUER RATING: A3 (Moody’s)
EXPECTED ISSUE RATING:   A3 (Moody’s)
ISSUE SIZE:  S$100 million (capped)
FINAL PRICE GUIDANCE:    2.95%
TENOR:  5 Year
SELLING RESTRICTIONS:    Regulation S and Sections 274 and/or 275, Chapter 289  of the SFA of Singapore
OPTIONAL REDEMPTION:     At par for taxation reasons
MANDATORY REDEMPTION:    At par upon delisting or termination of A-REIT
DETAILS:  SGD250K / Singapore Law / SGX-ST / CDP
SOLE BOOKRUNNER:  OCBC
SOLE LEAD MANAGER:  OCBC
TIMING: Today’s Business

5 year swaps 2.23% today which gives this bond a pick up of 0.72% for the best rated Reit in Singapore.

Better deal than the Mapletree Industrial that came out in April which paid 0.77% for 8 years and looks like it is trading tighter than ever at 0.64% for 8 years at the secondary level  ! https://tradehaven.net/market/sgd-new-issue-mapletree-industrial-trust-8y-3-02/

Then again, it was before all the Reit downgrades starting coming out and the whole gang of them quickly hit the streets with their bonds which are doing surprisingly well.

AREIT COMPARABLE

Not sure if the other Areit 7 year issued this year is trading much, but this 5 year at a spread of 0.72% is better than what the 7Y bond price is indicating.

I threw in UOL as a comparable because it is trading at Reit spreads and Soilbuild’s levels show that the market must be desperate for 3 year papers.

Nothing much to say about Ascendas, Mapletree and all the GLC names, the market seems to treat them all one and the same.