Frasers Centrepoint lists seven-year 3.65% retail bonds on SGX

PROPERTY developer Frasers Centrepoint Ltd (FCL) on Monday listed its seven-year retail bonds on the Singapore Exchange (SGX) mainboard under the stock code "AXXZ". This is its first retail bond offering.

Issued by FCL Treasury Private Limited, a wholly-owned subsidiary, it has a coupon rate of 3.65 per cent per annum with a seven-year tenure. The total issue size for the bond is S$500 million.

At 10.54am, the bonds were trading at 100.4 per cent of par.

Lim Ee Seng, group CEO of FCL, said: "We are encouraged by the strong response to both the placement and retail tranches of our bond offering. Our overall total offering was 3.2 times subscribed, and we upsized the retail tranche to meet the keen demand from investors."

The initial size of the bond offering was just S$200 million.The placement tranche of S$50 million was fully subscribed within a day. The public offer size was increased to S$450 million following strong demand.

Lawrence Wong, head of listings at the Singapore Exchange, welcomed the company's move to tap the retail investor base to meet its financing needs. This also gives investors more options in their wealth planning, he said.