Brokers' take

OUE Commercial Reit | Hold Target price: S$0.68 Aug 28 close: S$0.72 OCBC Investment Research, Aug 28

OUE Commercial Reit (OUECT) recently announced that it has successfully priced S$150 million 3.03 per cent fixed rate notes due 2020 under its S$1.5 billion multicurrency debt issuance programme. The notes drew strong interest, with the final order book attracting funds in excess of S$400 million. OUECT has no refinancing requirement in 2017, and from what we understand, the notes will be used to partially refinance the Singapore dollar term loan due in 2018. We are positive on OUECT's foray into unsecured borrowings, which is part of the manager's capital management strategy to harness greater financial flexibility and diversify its funding sources in the current low interest rate environment. We are also aware that the notes are priced at a rate that is in-line with some of the recent note issuances by other S-Reits. We maintain "hold" and our fair value estimate of S$0.68.

Singapore telcos | Overweight UOB Kay Hian, Aug 28