SGD NEW ISSUES : LTA 7Y AND 12Y
**NEW ISSUE: LAND TRANSPORT AUTHORITY OF SINGAPORE – SGD 7Y/12Y NOTES**
ISSUER: Land Transport Authority of Singapore
STATUS: Direct, unconditional, unsubordinated and unsecured Notes, issuance off the S$5 Billion Multicurrency Medium Term Note Programme
RATING: Unrated
FORMAT: Reg S, S274 & 275 of SFA
ISSUE SIZE: S$500M each (with option to upsize by S$100M each)
TENOR: 7 years | 12 years
ISSUE DATE: 31 August 2015
MATURITY DATE 31 August 2022 | 31 August 2027
COUPON: 2.57% | 3.09%
ISSUE PRICE: 100.00
USE OF PROCEEDS: In accordance with the Programme
REDEMPTION FOR TAXATION REASONS: In accordance with the Programme
PURCHASE UPON AMENDMENT TO LAND TRANSPORT AUTHORITY OF SINGAPORE
ACT: In accordance with the Programme
PAYMENT: Semi-annual, actual/365 (fixed)
DETAILS: SGD250K/Multicurrency Medium Term Note Programme/Singapore Law/CDP
LISTING: SGX-ST
SOLE LEAD MANAGER &
BOOKRUNNER: DBS Bank Ltd.
TIMING: Today’s business
We have not seen LTA for 5 years and thus it makes sense for them to pay just slightly more than the government unlike HDB that we see everywhere we turn.
Yet I am impressed that every single HDB bond issued in 2014 has survived the higher rates unscathed with 2 issues delivering a hefty premium for their investors as their credit premium compressed significantly since.
The LTA yields lower than HDB depicted graphically.
The 12Y will probably see an upsize given that the government just announced a smallish 15Y SGS re-opening a few minutes ago for S$ 1.1 bio. http://www.sgs.gov.sg/~/media/SGS/SGS%20Announcements%20pdf/Bonds%20PDF/2015/NZ10100F.pdf