SGX eyes first US dollar bond amid acquisition push

Singapore

SINGAPORE Exchange (SGX) is planning a maiden US dollar bond offering, which would make it the latest entrant in a rush by Asian firms to lock in cheap borrowing costs.

The city-state's sole equities bourse hired banks for a potential US currency note and held investor calls from Tuesday, according to a person familiar with the matter, who asked not to be identified because they're not authorised to speak about it.

The exchange, which posted a drop in its latest annual profit in part due to rising costs, has been expanding its fixed income, currency and index businesses through acquisitions as it diversifies from equities. Expenses will remain elevated as it continues to invest in growth, chief financial officer Ng Yao Loong said at an earnings briefing earlier this month.

Boosted by the acquisition of MaxxTrader and potentially more M&A activity, Singapore Exchange's revenue growth may be led by market data, connectivity and indexes, and fixed income, currencies and commodities, Bloomberg Intelligence analyst Sharnie Wong wrote in an Aug 10 note.

SGX isn't the only borrower poised to add to Asia's pipeline of US currency bonds. China Merchants Bank also hired banks for a potential offering of sustainability and green notes. BLOOMBERG