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Exciting BASEL-III Tier 2 SGD Bonds expected to be launched from Germany&rsquo s LBBW Bank after Labour Day. Likely placement managers include OCBC, UOB and/or BNP Paribus
Credit Rating: http://www.lbbw.de/en/investor_relations/rating/rating.jsp
Risks &ndash BASEL-III Tier 2 bonds contain loss-absorption feature. In the event that the banks suffered huge losses, Tier 2 bonds will be written-down/off or converted to equities after Additional Tier-1 (AT1) bonds are fully written-down/off.
Pros &ndash LBBW Bank is approximately 60% owned by the German City Stuttgart and Baden-Wü rttemberg State
Comparison with other Tier-2 SGD bonds from BBB+/- European Banks
- Issued 2 months ago, Commerzbank (Germany) 10NC5 4.875% SGD bonds, resale price appx 3% above par.
- Issued 12 months ago, ABN AMRO (Netherlands) 10NC5 4.75% SGD bonds, resale price appx 4.5% above par.
- Issued 18 months ago, BNP Paribus (France) 10NC5 4.3% SGD bonds, resale price appx 2.5% above par.
Probably OCBC' s biggest bond embarrassment since the 2015/16 peddling of Nam Cheong bonds to their private clients, Heeton' s new 2020 bonds trade at appx 1% below par on grey-market' s first morning and Heeton shares were down 3% this morning due to the disappointment over the failure to hit the indicative quantum.
Heeton' s new 6.1% 2020 Bonds might be one of the weakest plain-vanilla SGD bonds issued in 2017 till date.
Trading at 0.5 - 1.0% below par in grey market (before official issue date).
MarcPh ( Date: 28-Apr-2017 07:25) Posted:
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After a few months of talk, Banyan Tree confirmed the issue of a $24mio 4.5Y 3.5%pa convertible bond issue to Accor, including a board seat. The funds will be helpful towards the maturity of the 6.25% bonds which were not redeemed on 2015 first-call date.
Quote -
Banyan Tree has a 6.250% bond that will fully mature next month. Banyan Tree shocked the investors when they failed to call it in 2015 (when SIBOR was very low) and continued to pay 6.25%pa.
It wasn' t a huge amount just $50mio but it is a sign of distress and credit-negative decision. Following which, Banyan announced their heaviest loss in history (till 2015). Today, Banyan Tree bonds' are deemed riskier than Oxley. Banyan Tree' s 2020 bonds are trading at 8% below par while Oxley' s 2020 bonds are just 1% below par.
MarcPh ( Date: 24-Apr-2017 10:45) Posted:
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Placement managers OCBC failed to place out targeted $100mio for Heeton.
Final issue $75mio at 6.1%
MarcPh ( Date: 27-Apr-2017 10:58) Posted:
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3Y Heeton Holdings Ltd SGD
Indicative Yield:6.25%pa
Denomination: S$250,000
Remarks: Heeton recorded about EPS 3.8cents in last FY and likely to put more focus on overseas market. Heeton is trying to secure $100mio from this bond issue to fund the maturity and coupon payment of another $60mio tranche in Jun 2017 + working capital. At indicative yield of 6.25%, this issue is likely to give the third highest yielding coupon from a locally listed property company after Rowsley 6.25% and Tee Land 6.5% (not considering Banyan Tree 6.25% and Yanlord 6.2% which are due to mature next month).
The cost of financing and placing this bonds will erode about 2.0cents per share in the first year and the bond is likely to be more illiquid than Oxley bonds.
Bond Express offers a narrow selection of USD and SGD secondary bonds in small denominations (originally in US$200K or S$250K denominations):
- There are some simple sales charges (commission) for your trades.
- The bonds are not held in your name but in custodian accounts
- There are some platform fees
https://secure.fundsupermart.com/fsm/article/view/12186/FSMOne-Is-One-Bond-not-enough-Diversify-and-trade-bonds-in-small-lot-sizes-?locale=en_usNot many good-value bonds available for retail investors.
No new retail bonds for 2017 at all .
Any one has experience to share about fundsupermart' s bond express?
fundsupermart' s bond express?
https://secure.fundsupermart.com/fsm/article/view/12186/FSMOne-Is-One-Bond-not-enough-Diversify-and-trade-bonds-in-small-lot-sizes-?locale=en_us
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A Tale of Three Hyflux Perpetual Bonds / Preference Shares
- $300mio 5.75, Callable Jan 2017 - Redeemed
- $500mio 6%, Callable Apr 2018
- $500mio 6% Callable May 2020
The above Hyflux perp bond prices crashed in 2016 due to the launch of 2020 bonds (oversupply). It also reflected the huge > $100mio annual losses in TuasSpring Project which is like a cancer ruining the whole body. It was only until the redemption of the 2017 bonds in Jan 2017, that we saw a recovery in 2018 and 2020 bond prices
Summary of Hyflux' s Strategies for the Immediate Future
- Disposal of loss-running TuasSpring power project - Yesterday' s announcement of appointment of bankers for TuasSpring Power Project disposal will be cheered by investors althought it might result in steep loss-recognition.
- Asset-Light - Hyflux continues to dispose stakes in matured project forprofit-recognition eg. Nantong NewSpring, Galaxy NewSpring recently.
- Stronger Cashflow - In the last announced results, Hyflux is sitting on over $300mio with $400mio assets held-for-sale and another $190mio which will be coming in 1H17 due to the disposal of their 50% stake in GalaxySpring project.
Probable Moves:
- Hyflux has a sound business model and income from municipal projects. Risk-takers could capitalize in the subdued share prices in the near future due to the potential write-offs in TuasSpring project.
- With a stronger cash pile, the risk-adversed can sleep well with the 2018 bonds which are likely redeemed on first-call date and offers an attractive return of 7%pa (till call-date) with neligible risk of coupon default.
- It is difficult for Hyflux to issue more perpetual bonds right now due to the crash caused by the 2016 oversupply (higher cost of pricing such instruments in the immediate future). Upon the redemption of 2018 bonds, scarcity of the remaining 2020 bonds could generate some additional capital gains and offers a 7%pa yield (till call-date) at current prices.
The possible emergence of white knight for Ezra (likely to be subjected to Ezra bondholder' s debt restructuring approval) has given support to less-leveraged O& M issuers eg. Falcon has only $50mio secondary bonds issued and the rumour in O& M bottoming, has propelled Falcon' s bonds from 75-level to appx 95 within a month. https://www.bondsupermart.com/main/bond-info/bond-factsheet/SG6SJ3000005
MarcPh ( Date: 24-Apr-2017 10:54) Posted:
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Nam Cheong down 15% following the announcement.
They are supposed to handover > 50 vessels this year, but the company did not disclose how many vessels are on track to receive full-payment. A week ago, Macro Polo also announced some JV with Nam Cheong to handle some vessels built by Nam Cheong - http://splash247.com/marco-polo-looks-malaysian-jv-nam-cheong-find-work/
john_ric ( Date: 24-Apr-2017 10:11) Posted:
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Ezra in talks with potential investor pending announcement in May, but agreement will be subjected to Ezra bond investors' willingness to haircut.
Potential investor is looking to capitalize on Rickmer' s recent collapse as a scare-tactic, to threaten them to restructure debts, before injecting funds to bail out the company. Be sure that the bondholders will be treated roughly if the proposed deal is announced.
Very likely.
According to the last announced results, they have S$4.9bio cash n cash equivalent.
Although the bond' s step-up coupon (self-imposed penalty) will come in at 2022, failure to redeem on first opportuntity is a disappointment to creditors and it will increase the cost of financing in future. Eg. Banyan Tree has a 6.250% bond that will fully mature next month. Banyan Tree shocked the investors when they failed to call it in 2015 (when SIBOR was very low) and continued to pay 6.25%pa.
It wasn' t a huge amount just $50mio but it is a sign of distress and credit-negative decision. Following which, Banyan announced their heaviest loss in history (till 2015). Today, Banyan Tree bonds' are deemed riskier than Oxley. Banyan Tree' s 2020 bonds are trading at 8% below par while Oxley' s 2020 bonds are just 1% below par.
Therefore Genting will likely redeem the 5.125% perp bonds in October.
Is genting sg to call its 5.125% perp bond this Oct??
who dare to tough Nam C ' s bond??
courting death?
Nam Cheong announced intention to restructure debts on Saturday/Sunday midnight but no tangible plans disclosed.
http://infopub.sgx.com/FileOpen/Group%20Restructuring.ashx?App=Announcement& FileID=449569
Unsecured bonds due for maturity:
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NCLSP 5.000% 28Aug2017 - S$90mio (trading at appx 60% below par)
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NCLSP 6.500% 23Jul2018 - S$75mio (trading at appx 70% below par)
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NCLSP 5.050% 26Aug2019 - S$200mio (trading at appx 75% below par)
Current Market Cap - appx S$40mio
MarcPh ( Date: 14-Apr-2017 21:18) Posted:
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Ezra Holdings bond holders are still unsure if their investments can be recovered despite the firm concluding an informal meeting with investors yesterday.
Industry observers have said that a workable solution for Ezra would be for its creditors - both the banks and bond holders - to agree to various restructuring proposals, which could include deferring the repayment dates of liabilities, waiving some of the liabilities or converting part or all of them into equity.
" A likely scenario, in our view, is that (Ezra' s) shareholders will get wiped out while creditors will swop for equity," said KGI Securities analyst Joel Ng, noting that similar developments are taking place at highly leveraged energy companies in the United States.
http://www.straitstimes.com/business/companies-markets/ezra-updates-bond-holders-as-firm-seeks-rescue-solutions
High Risk Offshore & Marine Companies - Nam Cheong Limited
About $365mio of bonds issued in three tranches, trading at 60-80% discount to par. Strongly peddled by OCBC Private Banking two years ago (before oil weakness) in aftermarket trading due to expectations of over 50 vessels due for delivery in 2017/18.
Auditors cast going concern doubts on Nam Cheong
http://www.seatrade-maritime.com/news/asia/auditors-cast-doubt-on-nam-cheong-s-going-concern.html
High Risk Offshore & Marine Companies - Marco Polo Marine
Unable to repay the bonds after October 2016 maturity and restructured the bonds with new interests payout. Unfortunately, the company looks set to miss the first coupon payment after the restructuring.
Marco Polo proposes restructuring and refinancing, to miss bond interest payment
http://www.seatrade-maritime.com/news/asia/marco-polo-proposes-restructuring-and-refinancing-to-miss-bond-interest-payment.html
http://infopub.sgx.com/FileOpen/MPML%20Debt%20Restructuring.ashx?App=Announcement& FileID=448432
http://infopub.sgx.com/FileOpen/MPML%20Debt%20Restructuring.ashx?App=Announcement& FileID=448432