Can Hyflux retire its preference shares before they get dearer?

The answer will largely depend on whether Hyflux can cash out on its Tuaspring stake

Published Thu, Jan 25, 2018 · 09:50 PM

INVESTORS sniffing for yield would have noticed that Hyflux's 6 per cent preference shares, issued at S$100 apiece, now trade below par at S$92.67 even with the first call date nearing on April 25.

The first of a kind upon their market debut in 2011, Hyflux's S$400 million perpetual securities were an instant hit, bid up above par in the earlier years as retirees chased the 6 per cent semi-annual coupon like it was the best thing since sliced bread.

Fast forward to 2018 however, and the big question is whether or not Hyflux will be able to retire the perps come April, or incur a steep interest rate step-up to 8 per cent.

Banks wouldn't be keen to refinance the highly-leveraged water project devel…