SG Bonds Weekly – Week of 29 June 2020 June 29, 2020 534

  • Markets await the Federal Reserve Chair Jerome Powell’s testimony on Wednesday, as well as key data on the Singapore economy later in the week
  • Last week’s successful ST Telemedia bond issuance suggests our bond markets are still active and flush with liquidity

 

Outlook for the week

Bond markets may be muted this week as it awaits the Federal Reserve Chair Jerome Powell’s testimony on Wednesday, as well as key data on the Singapore economy later in the week. On maturing bonds, the Century Sunshine Group Holdings Limited bond CENSUN 7% ‘20s is maturing on Friday 3 July 2020. In the company’s last update, the company postponed an extraordinary general meeting scheduled on 18 June 2020 seeking to raise HKD300mn in convertible bonds to refinance the debt.

 

Key events for the week

  • Wednesday, 1 July 2020: Jerome Powell testimony before the Committee on Financial Services (12:30 am)
  • Wednesday, 1 July 2020: URA Private Home Prices QoQ (10:00 am)
  • Friday, 3 July 2020: Retail sales YoY (1:00 pm), Singapore PMI (9:00 pm)

 

Past week: New bond issuances

  • 25 June 2020: Singapore Technologies Telemedia Pte Ltd issued a S$375mn perpetual callable on 2 July 2027 with final price guidance at 4.1%. Demand was overwhelming for the wholly-owned subsidiary of Temasek, with an order book of over S$2bn (98% from Singapore). Our bond markets still seem to be active and flush with liquidity, especially for stronger names.

 

Past week: Key events

  • 22 June 2020: Oxley Holdings Ltd announced the sale of Chevron House for a total consideration of S$315mn, boosting liquidity. Oxley will receive an estimated S$200mn upon completion of the sale.

 

 

 

 

 

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About the author

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Timothy Ang
Research Analyst
Phillip Securities Research

Timothy covers credit analysis of local and foreign bonds. Previously an equity dealer, he handled equity trade execution and portfolio management. 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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