September 15, 2017 / 3:16 AM / in a year

Frasers sells perps at 3.95%

SINGAPORE, Sept 15 (IFR) - Frasers Centrepoint last Thursday sold S$308m (US$228.6m) of perpetual non-call five notes at 3.95%, with a spread of 224.5bp over SOR. This was the third-largest perpetual issue of the year, behind Mapletree Investments’ jumbo prints of 4.5% notes of S$625m in January and 3.95% notes of S$700m in May. Although Frasers Centrepoint’s fourth issue of the year, the perp drew robust orders of S$950m from 62 accounts. Private banks took 81% and the rest went to banks, corporate investors and fund managers. Singapore accounted for 88% of the book. The issue yielded some pick-up against other like-structured perps. Hotel Properties’ perp non-call five, which sold at 4.65% at par in April, was indicated at a bid of 103.6 with a yield of 3.78%, while Wing Tai Holdings’ perp non-call five, priced at 4.08% at par in June, was quoted at a bid of 102.7% with a yield of 3.76%. FCL Treasury will issue the subordinated unrated bonds, with a guarantee from parent Frasers Centrepoint, on September 21, off a S$5bn multi-currency debt-issuance programme. There will be a reset at the end of year five and every five years to the prevailing Singapore dollar SOR, plus the initial credit spread. A 100bp step-up will kick in year 10. Coupons are deferrable and cumulative. There will be a 100bp step-up if the bonds are not called when a change-of-control event occurs. Proceeds will be used for corporate funding needs. OCBC was sole bookrunner and lead manager. (Reporting by Kit Yin Boey; Editing by Dharsan Singh)

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