Asian bond spreads widened significantly mainly on concerns of China Evergrande Group’s bond maturities.
Centurion invited holders of its existing S$60 million 5.5% due-2022 notes to exchange them for new 3.5-year notes at a premium and/or to sell them for cash at par.
OCBC Bank priced a S$200,000,000 3.00% Perpetual Capital Securities first callable in 2030.
Outlook for the week
Key economic releases for the week
Wednesday, 30 Sep: US GDP QoQ, US Core PCE QoQ
Thursday, 1 Oct: SG URA Private Home Prices QoQ
Friday, 2 Oct: SG PMI
Last week summary
Last week, Asian bond spreads widened significantly mainly on concerns of China Evergrande Group’s bond maturities. The world’s most indebted property developer is slated to repay on Oct. 16 a combined 21.6 billion yuan ($3.2 billion) of principal and interest on a five-year 8% bond and another 7.88% note of the same tenor. Reports of the company warning local government officials of a potential cash crunch that could pose systemic risks caused investors to dump Evergrande’s bonds, sending its yuan note due 2023 down as much as 28% to a record low on Friday, while high-yield dollar debt sank across Asia.
On Monday, Centurion invited holders of its existing S$60 million 5.5% due-2022 notes to exchange them for new 3.5-year notes at a premium and/or to sell them for cash at par. The new Singapore dollar-denominated 3.5-year fixed-rate due-2024 notes will carry a 5.75 per cent coupon until April 11, 2023. This rate will increase to 8.25 per cent from April 12, 2023 if any of the new notes are not redeemed by then. Noteholders have until noon on Oct 2 to submit their forms to the agent to make an offer to exchange and/or an offer to sell. Any of the existing S$60 million notes that are not exchanged or purchased by Feb 1, 2021 will be redeemed at par plus interest accrued.
On Thursday, OCBC Bank priced a S$200,000,000 3.00% Perpetual Capital Securities first callable in 2030.
