Hyflux's loss hits S$116m; it won't redeem perps until Tuaspring stake is sold

Singapore

AMID delays in asset sales and payments from customers, Hyflux said on Tuesday that it will not redeem its retail perpetual securities until it divests its unprofitable Tuaspring project.

A S$400 million tranche of Hyflux's perps reach their first call date on April 25. Hyflux has the right but not the obligation to redeem its perps at the first call date. The coupon yield on these perps will step up from 6 per cent to 8 per cent per annum until they are redeemed.

Hyflux had wanted to partially divest up to 70 per cent of Tuaspring water desalination and power plant last year, but has not closed a deal. Tuaspring is held on its books at a…