FCL's retail bonds trade above par

Singapore

PROPERTY developer Frasers Centrepoint Ltd's seven-year retail bonds closed trading above par on Monday, after meeting with strong demand in the subscription phase. Analysts attributed the demand to the appealing coupon rate of 3.65 per cent per annum, and retail investors' familiarity with the issuer and confidence of its credit profile.

The bonds, listed on the Singapore Exchange (SGX) mainboard under the stock code "AXXZ", closed the day at 100.5 per cent of par. At this price, the yield to maturity is 3.56 per cent. This is FCL's first retail bond offering, issued by its wholly owned subsidiary FCL Treasury. Property developers here usually issue bonds to institutional rather than retail investors.