Demand for SGD bonds still hot; S$4.3b orders for 2 deals made

Singapore

THE demand for local bonds is relentless, even after a gangbuster last week.

On Monday, two new deals drew orders of a combined S$4.3 billion, which led to pricing diving as investors seemed gripped by fears of lower interest rates. One bond was by Canadian insurer Manulife Financial Corporation, and the other, Mapletree Logistics Trust.

Manulife had orders of more than S$3.5 billion for its 10-year deal, which will be priced at 3.85 per cent, tightened from the initial 4.15 per cent guidance. The insurer, for which this is its inaugural Singdollar (SGD) bond offer, will print S$500 million bonds.

Samuel Chan, Standard Chartered Bank's executive director of its bond syndicate, said: "This is the first foreign insurance company to issue in SGD; an investor-friendly structure was key to building investo…