Market perks up for investment-grade Singapore-dollar perpetual bonds

Data from DBS shows S$5.45b has been raised from 17 perp issuances this year, already exceeding the S$1.9b raised across 11 deals in 2020

Published Wed, Sep 29, 2021 · 05:50 AM

Bonds

Singapore

COMPANIES are taking advantage of tighter credit spreads and low interest rates to issue perpetual bonds, and industry players say the market demand for these bonds is strong despite some past problems.

Data from DBS as at Sept 17 showed S$5.45 billion had been raised from 17 perp issuances this year, already exceeding the S$1.9 billion raised across 11 deals in 2020.

Singapore-dollar perp issuances dipped last year, said market watchers polled by The Business Times, partly due to lower investment needs amid an uncertain growth outlook. Investors were also increasingly wary of defaults, especially from high-yield issuers.

This year, however, more issuers are using SGD perps to reinforce their capital base and shield themselves against anticipated econ…