New SGD 7YR transaction announced with initial guidance of 4.25% area and anchored on the back of very significant reverse enquiries from institutional accounts.
– Issue Size of SGD 120 million (capped)
WING TAI HOLDINGS 4% 07/18 103.45 3.06%
WING TAI HOLDINGS 4 ½% 09/22 101.50 4.27%
WING TAI HOLDINGS 4 ¼% 03/23 99.10 4.38%
WING TAI HOLDINGS 4.7% 02/24 100.75 4.60%
Revenues have declined significantly since FY 2013. Not overly leveraged and not expanding aggressively like Guocoland which makes it a better credit which is the reason for its tighter coupon.
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7 year interest rates at 2.25% today which give us a nice credit premium of 2%.
They did a 100 mio 10 year 4.7% issue earlier this year which I had missed and not not regular issuers these days having come a long way from their over leveraged days.
Wingtai is a household name and most fund managers know them well. I applaud their strategy of sitting this property downturn out much like Capitaland (10 year at 3.8 %) and CDL are doing.
This bond should go down pretty well with investors with its magic 4% handle that is a leap and mile safer than the FCL perp, imo and offers a big pick up over the Lend Lease (Jurong Mall) unrated issue.
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