SG Bonds Weekly – Week 6; Festive Week February 8, 2021 315

  • New issue pipeline slows down ahead of Chinese New Year festive season, with 3 new mandate outstanding from the ones announced over the fortnight.
  • SGX has fully placed out €240mn (S$386mn) of its zero coupon convertible bonds due March 1, 2024, with a “high-quality book of institutional investors”, hours after the proposed issue was announced on Monday evening (Feb 1).
  • Primary markets in Asia took it down a notch this week as the markets digests the record month in January.

 

Outlook for the week

Key economic releases for the week

  • Mon, 8 Feb: SG: Foreign Reserves (5:00PM)
  • Wed, 10 Feb: Earnings: DBS GROUP HOLDINGS – Bef Mkt, CH: CPI YoY (9:30AM), US: CPI YoY (9:30PM)

 

Last Week Summary

Primary markets in Asia took it down a notch this week as the markets digests the record month in January. Nonetheless, some issuers caught the window of opportunity to secure financing before the Chinese New Year festivities. Most notably, Alibaba bagged a USD 5bn deal overnight post the resurface of Jack Ma. With the exception of China Overseas Grand Oceans Group, all Investment Grade issuers managed to price deals at negative New Issue Premium, averaging 36.7bps of Initial Price Guidance Tightening this week, signaling continued demand.

  • SGX has fully placed out €240mn (S$386mn) of its zero coupon convertible bonds due March 1, 2024, with a “high-quality book of institutional investors”, hours after the proposed issue was announced on Monday evening (Feb 1). The bourse said its offer was oversubscribed. The bonds can be converted into ordinary shares of SGX at an initial conversion price of $13.0944, a 32% premium over the closing price of $9.92 on Feb 1, 2021. This represents a negative yield to maturity of 0.331% per annum.
  • New issue pipeline slows down ahead of Chinese New Year festive season, with 3 new mandate outstanding from the ones announced over the fortnight.

 

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About the author

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Timothy Ang
Research Analyst
Phillip Securities Research

Timothy covers the US technology sector focusing on hardware companies. Previously a credit analyst, he handled bond analysis and research for the fixed income desk. He has presented seminars for organisations such as SIAS, SPH and IRAS, commentated live market updates for 93.8FM, and authored investment articles for the Business Times newspaper. He graduated with a Bachelor of Commerce in Accounting & Finance from the University of Western Australia.

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