Deep price discount raises fears over Hyflux perp redemption

Singapore

THE market seems to be pricing in the chance that Hyflux will not redeem its S$400 million 6 per cent retail perpetual securities, or perps, at the first call date of April 25.

After some wild price swings over the past few days, the 2018 perps of the stressed water project developer traded at 76.5 cents to the dollar on Thursday. Usually, bonds will trade closer to par as they near their first call date. A second S$500 million tranche of 6 per cent retail perps callable in 2020 closed at 60 cents to the dollar on Thursday.