2 ST Engineering units set up S$5b multicurrency medium-term note programme

TWO of ST Engineering's wholly-owned subsidiaries have established a S$5 billion multicurrency medium-term note programme, it said on Wednesday.

The programme is guaranteed by ST Engineering and was established on Wednesday by its subsidiaries ST Engineering RHQ and ST Engineering Treasury.

The notes will constitute direct, unconditional, unsubordinated and unsecured obligations of the issuer and rank equally with all other unsecured obligations, ST Engineering said.

The programme will "support the group's long-term strategy to enhance shareholder value", and enable it to obtain longer-tenor financing to "optimise its short-term to long-term debt mix and its capital structure".

Each series or tranche of notes may be issued in various amounts and tenors. They may be fixed-rate notes, floating-rate notes, zero-coupon notes, index-linked notes, dual-currency notes or a combination of different types of notes.

ST Engineering may nominate other subsidiaries as additional new issuers for the programme. These subsidiaries may from time to time and subject to certain conditions issue notes pursuant to the programme, it said.

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The programme replaces a US$1.2 billion multicurrency medium-term note programme previously established on July 6, 2009 by ST Engineering Financial I, and terminated in December 2018.

DBS Bank and JPMorgan (SEA) have been appointed arrangers and dealers of the programme.

Citigroup Global Markets Singapore, Crédit Agricole Corporate and Investment Bank, Singapore Branch, Mizuho Securities Asia, OCBC, Standard Chartered Bank (Singapore) and United Overseas Bank have also been appointed dealers.

ST Engineering has made an application to the Singapore Exchange for the listing of and quotation of the programme.

Its shares, trading cum-dividend, were down S$0.04 or 1.2 per cent to S$3.26 as at 9.18am on Thursday.