BOND THREAD

[banana55]

Is the t-notes same as bonds or sgs..I tried to read n understand how the coupon thingy works but seems too complicated for someone who is not in the financial industry.

T-notes are Treasury Notes. The T in Treasury usually suggest a govt issued debt, but is not always the case. The "Notes" suggest shorter maturity term relative to "Bonds" being longer termed debt. SGS are our govt's sovereign bond issues while UST or U.S. Treasury are the American equivalent. These being the safest debt is where Risk-free Rate is being derived from.

It's normal if you feel that it is complicated. The jargons were intended to confuse. Lawyers have their legalese, Doctors have their handwriting, Accountants have their pots and pans for cooking, taxi drivers have ways to turn black into white.

[Laguna]

S$ is down for 10% in 10 months.
1.4 will be the first resistance

[cbsh38584]

S$ is down for 10% in 10 months.
1.4 will be the first resistance

The SGD borrowing cost up again from 1.48% to 1.63% to 1.84% within months.
USD borrowing cost still remain low @1.06% but I believe it will slowly move up.

S$1.15m corp bond will be due in 2015 & it is 1st time I hold the bond till maturity
since I started investing & trade bond in Mid 2010. Another S$1m will be due in
Mid 2016. This is to reduce my leverage to almost ZERO.

During the past 4 years +, I have gone through a few crisis & ride it through.

Euro crisis in 2011.
Evergrande - Muddy water accounting problem
Olam crisis - Muddy water accounting problem
Agile crisis - CEO was detained but release due to related corruption issues.Problem seem to be contained

Kaise crsis - Default on loan but luckily I sold in Apr2014 b4 the problem surface in Nov14. I had wanted
to buy when the price drop from 101 to 29. But I was highly leverage that it prevent me to take calculated
risk to buy @29 (est US$60k). Price shoot up to as high as 65 when Kaise comes under rescue. Price now
remain around 55+


In 2016, I will start to look for a bigger unit for own stay for my family.

[starrynight]

Lending rate is around the same at DBS - my banker just told me the 1-yr lending rate is 1.8x%

Lending =cbsh38584;502824]The SGD borrowing cost up again from 1.48% to 1.63% to 1.84% within months.
USD borrowing cost still remain low @1.06% but I believe it will slowly move up.

S$1.15m corp bond will be due in 2015 & it is 1st time I hold the bond till maturity
since I started investing & trade bond in Mid 2010. Another S$1m will be due in
Mid 2016. This is to reduce my leverage to almost ZERO.

During the past 4 years +, I have gone through a few crisis & ride it through.

Euro crisis in 2011.
Evergrande - Muddy water accounting problem
Olam crisis - Muddy water accounting problem
Agile crisis - CEO was detained but release due to related corruption issues.Problem seem to be contained

Kaise crsis - Default on loan but luckily I sold in Apr2014 b4 the problem surface in Nov14. I had wanted
to buy when the price drop from 101 to 29. But I was highly leverage that it prevent me to take calculated
risk to buy @29 (est US$60k). Price shoot up to as high as 65 when Kaise comes under rescue. Price now
remain around 55+


In 2016, I will start to look for a bigger unit for own stay for my family.[/QUOTE]

[cbsh38584]

[QUOTE=starrynight;503009]Lending rate is around the same at DBS - my banker just told me the 1-yr lending rate is 1.8x%

Latest statement show it has dropped from 1.84% to 1.55%.
I am feeling very uneasy on the oil price fluctuation , Euro weakening
10% within 2 weeks , Germany issues 5 years negative bond , swiss
national bank cut interest rate to negative deposit rate , Russia/Ukraine
political risk , continual US currency strengthening etc.

I am going to cut my borrowing fast. Just want to play safe now. I will not
trade anymore Derivative (ELN , FCN , Dual currency) & sell away my
underperforming hedge fund at 1% loss.

I am still struggling whether to further reduce my bond holding especially
perpetual bond (SGD OLAM 7% & USD Shui on 10.25% , USD Agile 8.25%)
excluding my straight bond S$1m due in May-jul15.

[starrynight]

Vic,

In the meantime, you will just hold it in cash?

Thanks,

[QUOTE=cbsh38584;503077]

Lending rate is around the same at DBS - my banker just told me the 1-yr lending rate is 1.8x%

Latest statement show it has dropped from 1.84% to 1.55%.
I am feeling very uneasy on the oil price fluctuation , Euro weakening
10% within 2 weeks , Germany issues 5 years negative bond , swiss
national bank cut interest rate to negative deposit rate , Russia/Ukraine
political risk , continual US currency strengthening etc.

I am going to cut my borrowing fast. Just want to play safe now. I will not
trade anymore Derivative (ELN , FCN , Dual currency) & sell away my
underperforming hedge fund at 1% loss.

I am still struggling whether to further reduce my bond holding especially
perpetual bond (SGD OLAM 7% & USD Shui on 10.25% , USD Agile 8.25%)
excluding my straight bond S$1m due in May-jul15.

[starrynight]

Some issuances the past week or so:

Initial Yield guidance at cost: 12% area
Expected Issue Size: USD Benchmark
Denomination: USD 200k x 1k
Timing: As early as today
Risk Rating: 4B
INDICATIVE LV: 55%

Issuer: Lodha Developers International Limited) (”LDIL”)
Initial Guarantors: Lodha Developers Private Limited (“Parent Guarantor”), Palava Dwellers Private Limited, Lodha Crown Buildmart Private Limited ("LCBPL") and Lodha Developers International Holdings Limited (“LDIHL”)
Future Guarantors: Shreeniwas Cotton Mills Limited to be guarantor within 6 months; Any subsidiary that accounts for at least 5.0% of either (i) the Parent Guarantor’s consolidated EBITDA for the most recently ended fiscal year or (ii) the Parent Guarantor’s Net Worth at the end of the most recent fiscal year
Ranking: Senior Unsecured
Parent Guarantor Ratings: Ba3/Stable (Moody’s), B+/Stable (Fitch)
Expected Issue Ratings: Ba3 (Moody’s) / B+ (Fitch)
Format: Reg S
Tenor: 5 non-call 3 years
Size: TBD
Coupon: Fixed Rate, Semi-Annual
Details: USD200k x USD1k denomination, New York Law, SGX Listing
UOP: Net proceeds (less approximately US$7mm which will be used to repay the Parent Guarantor and LCBPL directly) to be invested in LDIHL. Approximately US$242mm to be returned to Parent Guarantor to refinance existing indebtedness. Balance to be retained in LDIHL for general corporate purposes outside India
Joint Bookrunners: J.P. Morgan (B&D), Barclays and CLSA (a CITIC Securities Company)

[starrynight]

Initial Yield guidance at cost: 5.5% to 5.625% area
Expected Issue Size: USD Benchmark
Denomination: USD 200k x 1k
Timing: As early as today
Risk Rating: 5C
INDICATIVE LV: 60%

Issuer: Nordea Bank AB (publ) (Ticker: NDASS)

Issuer Ratings: Aa3 (neg) / AA- (neg) / AA- (stable)

Instrument: Additional Tier 1 Notes

Instrument Ratings: BBB (Fitch), BBB (S&P) (expected)

Size: USD FXD Benchmark

Maturity/call Perpetual NC Sep-2021

Callable on [ ]Sep-2021 (First Call Date) and every interest payment date thereafter, provided the Outstanding Principal Amount is equal to the Original Principal Amount

Settlement Date: [T+5]

Initial Interest Rate: [ ]% fixed, payable annually in arrear on September [ ] in each year, commencing September 2015

Interest Rate Reset: Fixed until the reset on the First Reset Date and every 5 years thereafter (non-step) to the sum of the relevant mid-swap rate and the First Margin

Ranking: Unsecured, subordinated obligations of the Issuer ranking pari passu among themselves and Parity Securities. Senior only to share capital and any other obligation of the Issuer ranking, or expressed to rank, junior to the Notes

Trigger Event: The CET1 Ratio of the Issuer on a solo basis or Nordea Group on a consolidated basis is less than the Trigger Level on such date

Trigger Level: 8% Nordea Group (Issuer and its subsidiaries), 5.125% Issuer

Loss Absorption Mechanism /

Write-Down: If a Trigger Event occurs, the Issuer shall write down the Outstanding Principal Amount of the Notes pro rata with other similar instruments to restore the CET1 Ratio to at least the Trigger Level

Reinstatement: If a positive Net Profit of both the Issuer and the Nordea Group is recorded, the Issuer may, at its sole and absolute discretion, reinstate and write-up the Outstanding Principal Amount of the Notes subject to certain restrictions

Interest Cancellation: Interest on the Additional Tier 1 Notes will be due and payable only at the sole discretion of the Issuer and will be mandatorily cancelled in certain circumstances. Interest payments are non-cumulative, subject to sufficient Distributable Items and Maximum Distributable Amount

Early redemption: Callable on a Withholding Tax Event or a Tax Event or a Capital Event at the Outstanding Principal Amount with accrued interest (if any, subject to Swedish FSA consent

Capital Event: The aggregate Outstanding Principal Amount ceases (or would fully cease) in whole to count towards Tier 1 Capital of either the Issuer or the Nordea Group

Variation/Substitution: Following a Withholding Tax Event, a Tax Event or a Capital Event, possibility to substitute or modify the terms of the Notes, subject to the consent of the Swedish FSA, without any requirement for the consent or approval of the Holders, so that the Notes become or remain Qualifying Securities

Governing Law: English law, except that the provisions relating to status and subordination and all non-contractual obligations arising out of or in connection with such matters are governed by, and shall be construed in accordance with, the laws of Sweden

Form of Securities: Bearer

Listing: Application will be made to the Irish Stock Exchange for the Securities to be admitted to the Official List and trading on the Global Exchange Market of the Irish Stock Exchange

Denominations: [USD]200k + [USD]1k

[starrynight]

Initial Yield guidance at cost: 4.25% area
Expected Issue Size: SGD Benchmark
Denomination: SGD 250k x 250k
Timing: Books Open
Comments: To follow
Risk Rating: TBC (4N indicative only)
LV: TBC (~55% indicative only)

Issuer : Perennial Treasury Pte. Ltd.
Guarantor: Perennial Real Estate Holdings Limited
Issuer Rating : Unrated
Status : Senior Unsecured
Issue Size : Benchmark
Format : Bearer, Regulation S only and S274/275 of SFA, SG; Issuance off Issuer's S$2bn Multicurrency Debt Issuance Programme
Tenor : 3-year
Initial Price Guidance : 4.25% area
Coupon Payment : Fixed Rate, semi-annual, actual/365 (fixed)
Settlement Date: [ ] March 2015
Maturity Date: [] March 2018
Denomination : SGD250k
Governing Law: Singapore Law
Listing: SGX-ST
Clearing : CDP
UOP : As per Programme
Joint Global Coordinators: DBS Bank Ltd. and United Overseas Bank Limited Joint Lead Managers
and Joint Bookrunners : DBS Bank Ltd., Oversea-Chinese Banking Corporation Limited and United Overseas Bank Limited
B&D: DBS Bank Ltd.
Timing: As early as today

[starrynight]

Intitial Guidance at Cost: 6-year: Mid Swap + 105bps (1.44% indic area)
10-year: Mid Swap + 125bps (1.98% indic area)

Expected Issue Size: EUR Benchmark
Denomination: EUR 100k x 1k
Timing: Today’s Business
Risk Rating: 4B
Indicative LV: 65%

Issuer: Glencore Finance (Europe) S.A.
Guarantors : Glencore plc, Glencore International AG & Glencore (Schweiz) AG
Ratings: Baa2 Stable / BBB Stable (Moody's / S&P)
Format: Senior Unsecured / Reg S Bearer
Maturity: 6 year - 17-Mar-2021 / 10 year - 17-Mar-2025
Amount: EUR BENCHMARK / EUR BENCHMARK
Settles: 17-Mar-2015 (T+6) / 17-Mar-2015 (T+6)
Coupon: [ ]% Fixed, Annual, ACT/ACT / [ ]% Fixed, Annual, ACT/ACT
Denominations: €100,000 x €1,000
Docs: EMTN programme. Listed Lux. Denoms 100k+1k.
Opt.Redempt: Par call 3mos prior to maturity
Bookrunners: Barclays / BBVA/ CACIB / Deutsche Bank / MUFG
B&D: Barclays (6y) / Deutsche Bank (10y)

[starrynight]

Intitial Guidance at Cost: Mid Swap + 190bps (2.77% indicative)
Expected Issue Size: EUR Benchmark
Denomination: EUR 100k x 1k
Timing: Today’s Business
Risk Rating: 5C
Indicative LV: 60%

ISSUER: Credit Agricole S.A.
EXPECTED RATINGS: Baa3/BBB/A- (Moody's/S&P/Fitch)
SECURITY: Dated Subordinated Notes, Tier 2
FORMAT: Reg S Bearer. CRD IV/CRR compliant
SIZE: EUR Benchmark
SETTLEMENT: [17].03.2015
MATURITY: [17].03.2027
COUPON: [tbc]% Fixed, annual ACT/ACT
COUPON DEFERRAL: None
STATUS: Subordinated, ranking (i) pari passu with (a) any obligations or capital instrument of the Issuer which constitute Tier 2 Capital of the Issuer and (b) any other present and future direct, unconditional, unsecured and subordinated obligations of the Issuer that rank or are expressed to rank equally with the Notes and (ii) junior to present and future unsubordinated creditors of the Issuer and subordinated creditors of the Issuer other than the present or future claims of creditors that rank or are expressed to rank pari passu with or junior to the Notes
REGULATORY CALL: At any time at par, following a change in the regulator classification of the Notes as a result of which the Notes would be fully excluded from Tier 2 Capital, subject to the regulatory approval
TAX CALL: At any time at par, upon a change in the tax treatment of the Notes, subject to the prior regulatory approval
LISTING Euronext Paris
DENOMS: EUR 100k + 1k
GOVERNING LAW: English law, except for Condition 4 (Status of the Notes) which shall be governed by, and construed in accordance with, French law
SOLE BOOKRUNNER: CREDIT AGRICOLE CIB (B&D)
JLMs: Banca IMI/Lloyds/Nordea Markets/Santander GBM/UniCredit
TIMING: Books open - Today's business

** The Notes may be subject to mandatory write-down or conversion to equity if the Issuer becomes subject to a resolution procedure

[starrynight]

Coupon: 4%
Issue Size (Initial): HKD 123.3mio
Denomination: HKD 1mio x 100k
Timing: 19 March 5pm
Risk Rating: 3N
Indicative LV: 70%

Issuer: Far East Horizon Limited
Issuer Rating: BBB- (S&P)
Issue Rating: Unrated
Dealer: DBS Bank Ltd.
Initial Size: HKD123.3mio
Settlement Date: 13 Mar 2015
Maturity Date: 13 Mar 2020
Coupon: 4.00%p.a., payable quarterly
Deno: HKD 1mio x 100k
Clearing: Euroclear/clearstream
BBG ticker: EK7951784

[starrynight]

Initial Yield guidance at cost:
3Yr tranche: CT3+205BPS AREA [~3.14%]
5 Yr tranche: CT5+225BPS AREA [~3.85%]

Expected Issue Size: USD Benchmark
Denomination: USD 200k x 1k
Timing: Books Open
Comments: To follow
Risk Rating: 3Yr: 2N indicative / 5Yr: 2N indicative
LV: 3Yr: 75% indicative / 5Yr: 75% indicative

Issuer: ICBCIL Finance Co. Limited (the “Issuer”)
Keepwell and Liquidity Support Deed / Deed of Asset Purchase Undertaking Provider: ICBC Financial Leasing Co., Ltd. (the “Company”)
Status: Fixed Rate, Senior Unsecured
Format: Reg S only
Company Ratings: A2 stable (Mdy’s) / A stable (S&P) / A stable (Fitch)
Expected Issue Ratings: A3 (Moody’s) / A (Fitch)
Currency: USD
Size: Benchmark Size
Tenor: 3 Years | 5 Years
COC Put: Put at 101%
Use of Proceeds: Acquisition of assets in the ordinary course of trading
Terms: SEHK Listing, US$200k/US$1k denominations
Governing Law: English Law
JBRs/JLMs: Citi, ICBC (Asia), ICBC International, J.P. Morgan, Morgan Stanley (B&D), and Standard Bank Plc

[starrynight]

Initial Yield guidance at cost: 4.75% area
Expected Issue Size: TBD
Denomination: SGD 250k x 250k
Timing: Books Open
Comments: To follow
Risk Rating: TBC
LV: 55% indicative TBC

Issuer: Q&M Dental Group (Singapore) Limited
Issue Rating: Unrated
Status: Senior, unsecured
Distribution: As per Information Memorandum, Singapore selling restrictions under Section 274/275 of SFA
Format/Docs: Reg S Bearer / Issuer's SGD200million Multicurrency Medium Term Note Programme
Tenor: 3-Year
Coupon Payment : Fixed Rate, semi-annual, actual/365 (fixed)
Issue Size: TBD
Redemption upon Cessation or
Suspension of Trading of the
Issuer’s Shares: In accordance with the Programme
Redemption for Taxation Reasons: Yes, in accordance with the Programme
Denomination: SGD250K
Governing Law: Singapore Law
Listing: SGX-ST
Clearing: CDP
Joint Bookrunners: DBS, HSBC (B&D), UOB

[cbsh38584]

[QUOTE=starrynight;503081]Vic,

In the meantime, you will just hold it in cash?

Thanks,

Still will not hold cash until 2016. Euro QE till Sept 16 ? Just reduce my high leveraging for my family sake.
I am watching what our Wee Chou Yau , financial minster , Oei Hong Leong word & action etc closely on the
world economic situation.


Just like what our former minister (now president) said in Mar 2008.
Tony Tan : The world could be facing its worst recession in 30 years and that financial markets would be highly volatile.

His speech in Mar 2008 prompted me to immediately sell most of my holding to keep CASH before the Lehman crisis in
Sept 2008. But still cannot escape due to the derivative product (accumulator) I am investing. Luckily I survived as
I have enough CASH to tie over the most difficult period in my life. Many many sleepless night. That is why I will stop all
ELN,FCN , Dual currency investment (DCI) & illiquid hedge fund investment as from now.

[cbsh38584]

Bond mature in 2015.
S$500k - VTB SGD 4% Due July15 LTV70%(Bought 98.5 during crisis but it drop to 93. Now 99.5)

S$250k - Banyan Tree SGD 6.25% callable @103 in May15. LTV 60% (Likely to be called. sell price is now 103+)

S$250k - Lippomall SG4.88% due Jun15 @101.8 LTV 70% (Bought last yr for 3% yield & short dated)

[starrynight]

Thanks Vic.

My Cambridge just matured last week, and I have Nam Cheong coming up in Nov. Also have the callable Ezion (step up is 3%).

Trying to get another lot of Nam Cheong as a pseudo-FD for the 8 months, but my bank doesn't always have inventory.

Bond mature in 2015.
S$500k - VTB SGD 4% Due July15 LTV70%(Bought 98.5 during crisis but it drop to 93. Now 99.5)

S$250k - Banyan Tree SGD 6.25% callable @103 in May15. LTV 60% (Likely to be called. sell price is now 103+)

S$250k - Lippomall SG4.88% due Jun15 @101.8 LTV 70% (Bought last yr for 3% yield & short dated)

[cbsh38584]

More than 95% of the retail investors who trade in/out. Likely to lose. The worst losers are the one of speculate on penny stocks & incur huge debt.

My friend has been investing & trading stock since late 80s. He has never made any money for the past 25 years. In fact he loses hundred of thousands.
He don't realise his own investing strategy until he take over his OLD fashion father stock portfolio due to his father illness & bedridden.

He got a shock that his father bought many SG blue chip stock like local bank , Singpost , comfort delgro , Keppcorp , SPH etc. None speculative stocks.
Every year, the dividend payout is more than 7% + capital gain base on his stock purchase price he bought many years ago.

He was surprise that his father despite did not rec any form of education can be successful in investing. He got degree & yet his lose money in stock.
So You don’t need extraordinary IQ of 160 or master or PHD degree to succeed as an investor. But U need a lot of EQ. Less GREED & dont follow HERD mentality.
Buy during crisis & be very PATIENCE to wait for the crisis.Treat it as you are holding a "REAL ESTATE" collecting RENTAL. Don't TRADE in/out. DONT speculate PENNY STOCK.

Some say OLD HABITS DIE HARD or talk is easy & to execute it is difficult. That is why I tell most of friend to switch more to BOND or bond fund & less allocation
on equity if he still unable to control is emotional well.

[Werther]

Werther,

My suggestion is you go talk to an RM to get some ideas / education on bond investing, but hold off on making trades for a while until the initial "excitement" dies down. What you choose to invest in depends on your investment horizon, risk appetite, etc. For example, for me, I'm hoping to buy a second ppty if the prices drop more, so I tell myself I can only buy bonds which mature in the next <15 months. You can obviously sell in the secondary market (i.e. back to your bank), but be prepared for small fry like us, we get screwed on the prices.

If you ask your RM for a list of bonds with your specified criteria (e.g. SGD? time before maturity? Min yield to maturity, etc.) they can come up with some candidates? Obviously the more specific you are, the more they think / know you are serious, and the more they try to help you.

Hi Starrynight

Thanks for your advice.

But I am still blurr on such bonds... so far only bought ocbc structured bond which has been redeemed. I am like you trying to buy one more property but prices still quite firm... so $$ in FD collecting peanuts interest.

[Werther]

More than 95% of the retail investors who trade in/out. Likely to lose. The worst losers are the one of speculate on penny stocks & incur huge debt.

My friend has been investing & trading stock since late 80s. He has never made any money for the past 25 years. In fact he loses hundred of thousands.
He don't realise his own investing strategy until he take over his OLD fashion father stock portfolio due to his father illness & bedridden.

He got a shock that his father bought many SG blue chip stock like local bank , Singpost , comfort delgro , Keppcorp , SPH etc. None speculative stocks.
Every year, the dividend payout is more than 7% + capital gain base on his stock purchase price he bought many years ago.

He was surprise that his father despite did not rec any form of education can be successful in investing. He got degree & yet his lose money in stock.
So You don’t need extraordinary IQ of 160 or master or PHD degree to succeed as an investor. But U need a lot of EQ. Less GREED & dont follow HERD mentality.
Buy during crisis & be very PATIENCE to wait for the crisis.Treat it as you are holding a "REAL ESTATE" collecting RENTAL. Don't TRADE in/out. DONT speculate PENNY STOCK.

Some say OLD HABITS DIE HARD or talk is easy & to execute it is difficult. That is why I tell most of friend to switch more to BOND or bond fund & less allocation
on equity if he still unable to control is emotional well.

Hi CBSH

Always encouraging to hear such advice from you. I will forward this piece of advice to my son... hopefully they can learn something from here.

Thank you.

[starrynight]

Words of the wise...

I'm guilty of this myself, though much lesser with age.. it's clear that your principle is right when my mom, who used to rely only on teletext, has significantly higher ROI on stocks than me.

I also used to read all the brokerage reports and invest in the small-caps which are the "next big thing" to my detriment.

More than 95% of the retail investors who trade in/out. Likely to lose. The worst losers are the one of speculate on penny stocks & incur huge debt.

My friend has been investing & trading stock since late 80s. He has never made any money for the past 25 years. In fact he loses hundred of thousands.
He don't realise his own investing strategy until he take over his OLD fashion father stock portfolio due to his father illness & bedridden.

He got a shock that his father bought many SG blue chip stock like local bank , Singpost , comfort delgro , Keppcorp , SPH etc. None speculative stocks.
Every year, the dividend payout is more than 7% + capital gain base on his stock purchase price he bought many years ago.

He was surprise that his father despite did not rec any form of education can be successful in investing. He got degree & yet his lose money in stock.
So You don’t need extraordinary IQ of 160 or master or PHD degree to succeed as an investor. But U need a lot of EQ. Less GREED & dont follow HERD mentality.
Buy during crisis & be very PATIENCE to wait for the crisis.Treat it as you are holding a "REAL ESTATE" collecting RENTAL. Don't TRADE in/out. DONT speculate PENNY STOCK.

Some say OLD HABITS DIE HARD or talk is easy & to execute it is difficult. That is why I tell most of friend to switch more to BOND or bond fund & less allocation
on equity if he still unable to control is emotional well.

[starrynight]

Initial Yield guidance at cost: High 3%
Expected Issue Size: SGD Benchmark
Denomination: SGD 250k x 250k
Timing: Books Open
Risk Rating: 5C
LV: 60% indicative

Issuer: Australia and New Zealand Banking Group Limited (“ANZ”)
Issuer Ratings: Aa2(Moody’s,stable), AA-(S&P,stable), AA-(Fitch,stable)
Exp Issue Ratings: [A3] by Moody's, [BBB+] by S&P and [A+] by Fitch
Security Description: Dated Tier 2 Fixed Rate Subordinated Notes (the "Notes”)
Format: Reg S, Registered Form, off ANZ's EMTN Programme for Non PD Notes
Ranking: The Notes constitute direct, unsecured, subordinated obligations of ANZ. Subject to the conditions relating to Conversion or Write-Off on Non-Viability Trigger Event, in the event of and prior to the commencement of the winding-up of ANZ, the principal amount of, any interest on, and any other payments including additional amounts in respect of the Notes will rank behind all claims of Senior Creditors, pari passu with Equal Ranking Securities and ahead of Junior Ranking Securities. Equal Ranking Securities include Tier 2 securities issued after 1 January 2013. Senior Creditors include, but are not limited to, Tier 2 securities issued before 1 January 2013.
Currency: SGD
Tenor: 12-year Non-Call 7-year
Interest Format: Fixed rate of [x]% until [ ] March 2022; thereafter, if not called, a one time reset for the remaining five years at the five-year SGD SOR rate on [xx March 2022] plus [x] (with [x] being the initial credit spread over seven-year SGD SOR at pricing), payable semi-annually
Settlement Date: [xx March 2015]
Optional Redemption Date: Issuer call option on [ ] March 2022 (one-time call), and also redemption upon tax and/or regulatory event, each subject to prior written APRA approval
Conversion: If a Non-Viability Trigger Event occurs, the Notes will Convert or be Written-Off subject to, and in accordance with, the Conditions.
Non-Viability Trigger Event: Non-Viability Trigger Event occurs on the earlier of:
(i) issuance to ANZ of a written determination from APRA that Conversion or Write-Off or the Notes is necessary because without it ANZ would become non-viable; or
(ii) a determination by APRA, notified to ANZ in writing, that without a public sector injection of capital, or equivalent support, APRA considers that ANZ would become non-viable.
Denominations: SGD[250,000] x SGD[250,000]
Governing Law: English, except in relation to subordination, Conversion and Write-Off provisions of the Notes which will be governed in accordance with the laws of the State of Victoria and the Commonwealth of Australia
Listing: Australian Securities Exchange (ASX)Settlement Euroclear / Clearstream

[starrynight]

Issuance was yanked... probably due to un-attractive coupon rate

++++

Initial Yield guidance at cost: 5% area
Expected Issue Size: TBD
Denomination: SGD 250k x 250k
Timing: Books Open
Comments: To follow
Risk Rating: 5N indicative
LV: 55% indicative

ISSUER: Centurion Corporation Limited
SERIES: 002
STATUS: Direct, unconditional, unsubordinated and unsecured Notes
RATING: Unrated
FORMAT: Reg S, S274 & 275 of SFA, issuance off S$500 Million Multicurrency Medium Term Note Programme
ISSUE SIZE: TBD
TENOR: 5 years
ISSUE DATE: [ ] March 2015
MATURITY DATE: [ ] March 2020
REDEMPTION AT OPTION OF
NOTEHOLDERS UPON CESSATION
OR SUSPENSION OF TRADING
OF SHARES: At par, in accordance with the Programme
REDEMPTION FOR TAXATION REASONS: Yes, in accordance with the Programme
PAYMENT: Semi-annual, actual/365 (fixed)
DETAILS: SGD250K/Multicurrency Medium Term Note Programme/Singapore Law/CDP
LISTING: SGX-ST
JOINT BOOKRUNNERS: DBS and RHB Sec
TIMING: This week’s business, as early as today
B&D: DBS

[starrynight]

Initial Yield guidance at cost: 10yr: CT10 + 225bps (4.34% indic) / 20yr: CT30+ 250bps (5.18% indic)
Expected Issue Size: USD Benhmark
Denomination: USD 200k x 1k
Timing: Books Open
Risk Rating: 4B
Indicative LV: 10yr: 65% / 20yr: 55%

Issuer: APT Pipelines Limited (Ticker: APAAU)
Parent Guarantors: Australian Pipeline Limited (“APL”), in its separate capacities as trustee and responsible entity of Australian Pipeline Trust (“APT”) and of the APT Investment Trust (“APTIT”)
Subsidiary Guarantors: Certain subsidiaries of the Parent Guarantors (see Annex A of e-red)
Ratings: Baa2/BBB (both stable)
Security Type: 144A/Reg S; senior unsecured
Size: Benchmark
Currency: USD
Tenor: 10yr FXD; 20yr FXD
Optional redemption: Make-whole
Par call: 3mo prior to maturity for both tranches
CoC: 101% CoC
Special redemption
regarding QCLNG
Pipeline Acquisition: See e-red
Use of Proceeds: To fund, in part, the QCLNG Pipeline Acquisition and for general corporate purposes

[starrynight]

Initial Yield guidance at cost: 6.50% area
Expected Issue Size: TBD
Denomination: SGD 250k x 250k
Timing: Books Open
Comments: To follow
Risk Rating: 4N
LV: 55% indicative

Issuer: Rowsley Ltd.
Status: Senior, unsecured, off SGD500m Multicurrency MTN Programme
Rating: Unrated
Format: Reg S, S274 & 275 of Singapore SFA
Tenor: 3 years (non-callable for 1 year)
Issue Size: TBD
Payment: Semi-annual, Actual/365 (fixed)
Issue Date: TBD
Interest Reserve Account: One interest payment to be maintained at all times
Redemption at the Option of the Issuer: At the aggregate of 100% and half the coupon rate, in whole or in part,
on the second Interest Payment Date, and at the aggregate of 100% and one quarter of the coupon rate on the fourth Interest Payment Date.
Change of Control Put: At 101%, if any person or persons acting together (other than an Existing Substantial Shareholder) acquires Control of the Issuer
Delisting Put: At par, as per the Programme.
Use of Proceeds: As per the programme
Denomination: SGD250K
Governing Law: Singapore Law
Clearing: CDP
Listing: SGX-ST
Joint Lead Managers
& Bookrunners: DBS Bank (B&D), Standard Chartered Bank

[starrynight]

Initial Yield guidance at cost S/Q Swap+[250] bps / [4.92]% ann act/act yield
Expected Issue Size: AUD 100mio minimum
Denomination: AUD 200k x 2k
Timing: Books Open
Comments: To follow
Risk Rating: 4N indicative TBC
LV: 70% indicative TBC

Issuer: Olam International Limited.
Format: AUD Eurobond Fixed Rate Senior, unsecured
Ratings: Unrated
Size: Minimum AUD 100mm
Trade date: [17] March 2015
Settlement: [26] March 2015
Maturity: [26] March 2020
Coupon: [4.875]% annual, act/act
Reoffer: S/Q Swap+[250] bps / [4.92]% ann act/act yield
Denoms: 200k x 2k (min 500k Aus)
Docs: EMTN / SGX Listed
Clearing: Euroclear / Clearstream
Sole Lead: Westpac (B&D)

[starrynight]

Initial Yield guidance at cost: 8% to 8.25% area
Expected Issue Size: USD 2.5 bio
Risk Rating: 4B
INDICATIVE LV: 50%

Issuer.............FMG Resources (August 2006) Pty Ltd
Ratings............Baa3/BBB
Issue..............Senior Secured Notes
Amount.............$2,500,000,000
Maturity...........7 years (2022)
Call Protection....NC3 then par + 1/2 coupon
Equity Clawback....Up to 40% within the first 3 years
Change of Control..Investor put at 101%
Distribution.......144A / Reg S for life
Use of Proceeds....Tender for existing 2017(all), 2018(all) and 2019(partial) ...................senior notes and general corporate purposes
Business...........One of the largest producers of iron ore
Timing.............Investor call today at 10:30 AM ET, pricing Tuesday
Jt Phys Books......Credit Suisse (B&D) / JP Morgan

In anticipation of the issuance of $2.5 billion of secured debt the agencies have updated their ratings for Fortescue. Moody's and Fitch published their reports on March 4th and S&P followed on March 5th. Reports can be found on the respective agency websites. The current and expected secured ratings are below:
· Current Secured Ratings: Baa3 / BBB / BBB-
· Expected Secured Ratings: Baa3 / BB+ / BBB-

[cbsh38584]

The borrowing cost for SGD is now 2.08%. Just three mths ago was just 1.2%.
I have SGD$1m SGD bond due in May15-Jul15 to offset my SGD$900k loan.

USD borrowing cost is still low @1.08%. Will switch more USD short dated bond
instead of SGD$ denominate bond which the borrowing cost is much higher.

I have cut loss my Agile bond to reduce my exposure to China developer ppty bond.

In Oct13, Agile Property Holdings Ltd. tumbled to the lowest in more than
five years after its billionaire founder and chairman Chen Zhuolin was placed under
the control of Chinese prosecutors amid a money laundering allegation which it denied.
He was later being Released From Custody .

This is the 1st time I lose $$$ on my bond investment since 2010. Losses est 4.5%
(US$9k) including the coupon payout for holding 2 yrs.

So there is a risk for buying JUNK bond. So be extra careful .

[cbsh38584]

Good news. Alternative investment for those LOW risk investors who want to park their money in liquid government bond.
Return should be better than FD or those structure guarantee deposit offer by local bank. Hope the return is more than OA
rate of 2.5% & can use Ordinary acct to buy.




SINGAPORE: The Government and Monetary Authority of Singapore (MAS) are planning to introduce a new type of bonds to help individual investors get a better return on their savings, Senior Minister of State for Finance Josephine Teo said on Thursday (Mar 26).

Speaking at the annual conference of the Investment Management Association of Singapore (IMAS), Ms Teo said the planned Singapore Savings Bonds will be safe investments with principal guaranteed by the Government.

These bonds will have two features to make them more attractive for individual investors: The ability to get his or her money back in any given month with no penalty, and interest rates that are linked to long-term Singapore Government Securities rates.

Unlike bonds that pay the same coupon each year, the Singapore Savings Bonds will pay coupons that “step-up” or increase over time, providing investors with a higher return the longer they hold the bonds, she added.

"In short, the Singapore Savings Bonds will offer the higher returns of a long-term bond and give what investors call a term premium, while retaining the flexibility of a shorter-term deposit, and the safety of an instrument guaranteed by the Government," she said.

Ms Teo said the Government and MAS are still working on the details and will release more information later.

[teddybear]

I sought of suspect that there may be a quantum of how much a person can invest in for this Government Savings Bonds (if the deal is really very good!). Don't forget that there are just too much SGD liquidity floating around still looking for higher yields than Fixed Deposit rates. The cap could be say $10k or $50k (something like that). Let's wait and see the details.............

Good news. Alternative investment for those LOW risk investors who want to park their money in liquid government bond.
Return should be better than FD or those structure guarantee deposit offer by local bank. Hope the return is more than OA
rate of 2.5% & can use Ordinary acct to buy.




SINGAPORE: The Government and Monetary Authority of Singapore (MAS) are planning to introduce a new type of bonds to help individual investors get a better return on their savings, Senior Minister of State for Finance Josephine Teo said on Thursday (Mar 26).

Speaking at the annual conference of the Investment Management Association of Singapore (IMAS), Ms Teo said the planned Singapore Savings Bonds will be safe investments with principal guaranteed by the Government.

These bonds will have two features to make them more attractive for individual investors: The ability to get his or her money back in any given month with no penalty, and interest rates that are linked to long-term Singapore Government Securities rates.

Unlike bonds that pay the same coupon each year, the Singapore Savings Bonds will pay coupons that “step-up” or increase over time, providing investors with a higher return the longer they hold the bonds, she added.

"In short, the Singapore Savings Bonds will offer the higher returns of a long-term bond and give what investors call a term premium, while retaining the flexibility of a shorter-term deposit, and the safety of an instrument guaranteed by the Government," she said.

Ms Teo said the Government and MAS are still working on the details and will release more information later.