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Private banks, fund managers drove demand for ST Telemedia's S$300m perpetual offering
PRIVATE banks and fund managers in Singapore took the bulk of Singapore Technologies Telemedia's S$300 million offering of subordinated perpetual securities, according to statistics by deal manager DBS Bank on Friday.
Private banks, which received a 15-cent concession, received about 56 per cent of the deal, while institutional investors and fund managers took another 36 per cent. Banks and corporates took the remaining 8 per cent. Singapore investors accounted for 99 per cent of the deal, with the last 1 per cent coming from other markets.
The deal, issued under ST Telemedia's S$2 billion multicurrency programme, attracted orders worth about S$600 million from more than 40 accounts, which would imply a subscription rate of about two times.
The deal priced at a distribution rate of 5 per cent, representing an initial credit spread of 270.5 basis points (bps) above the benchmark rate. The distribution rate will be reset after the 10th year and every 10 years thereafter to be the same spread against the prevailing 10-year Singapore-dollar swap offer rate plus a step-up of 100 bps.
The notes may be called by the issuer after five years.
ST Telemedia, a wholly owned Temasek Holdings subsidiary that holds a global portfolio of companies in the communications, media and technology sectors, is using the proceeds from the deal for general corporate funding requirements or investments. That includes financing new investments and acquisitions, refinancing of existing borrowings, working capital, capital expenditure and other general funding requirements.