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Rowsley debuts in bond market with a 3-year issue, offering 6.50%

Rowsley Ltd, a company controlled by Singapore billionaire Peter Lim is tapping the bond market in a maiden issue.

It is selling three-year bonds on Tuesday offering an initial price guidance 6.50 per cent coupon in its debut issue.

The unsecured 3-year bonds will be non-callable in the first year, according to a term sheet seen by The Business Times on Tuesday.

Non-callable means the issuer cannot redeem the bonds in the first year.

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A source said the issue size is expected at S$100 million.

The maiden issue has been structured with enhancements - a change of control "put" and maintaining one interest payment in an interest reserve account.

If there is a change of control, bondholders can put or have the right to sell back to the issuer at 101. The bonds are sold at par 100.

Peter Lim holds a 49.55 per cent stake in Rowsley which has two key assets: RSP Architects and Vantage Bay, Iskandar in Malaysia.

On the interest reserve account, one interest payment is to be maintained at all times with the trustee.

If the issuer decides to redeem at the end of the first year, it will be at par plus half of the coupon rate. If the coupon rate is fixed at 6.50 per cent, that means it'll be at 103.25.

If the issuer redeems at the end of the second year or on the fourth interest payment date, it will be at par plus one quarter of the coupon rate. If the coupon rate is fixed at 6.50 per cent, that means it'll be at 101.625.

DBS Bank and Standard Chartered Bank are the joint lead managers and bookrunners.

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