More perp deals hit the Singapore markets as interest rates remain low

Singapore

A FLURRY of perpetual deals continue to hit the market as investors remain keen amid low interest rates.

On Wednesday, Sembcorp Industries sold S$200 million NC3 perpetuals; this followed Lippo Malls Indonesia Retail Trust's S$120 million NC5.5 6.6 per cent issue on Monday. NC3 or NC5.5 means the issuer won't call or redeem the perpetuals before year three or year 5.5. Perpetuals are a hybrid security with no fixed maturity.

Both deals were priced lower than the initial guidance price due to demand. Lippo had an initial price guidance of 6.875 per cent and with orders of over S$300 million, it was able to price it lower at 6.6 per cent. Sembcorp's initial price guidance was in the 4 per cent area and it was pric…