SingPost sets up S$1b debt programme; Halcyon Agri prices US$200m perps
POSTAL service provider Singapore Post (SingPost) on Wednesday said its wholly-owned subsidiary SingPost Group Treasury has established a S$1 billion multicurrency debt issuance programme.
SingPost is the guarantor, while HSBC, Singapore branch has been appointed as arranger of the programme.
Under the programme, SingPost Group Treasury may issue notes and perpetual securities denominated in Singapore dollars, or any other currency agreed between itself and the relevant dealer(s).
Net proceeds will be used for financing general working capital, corporate requirements and funding needs of the group, or such other purposes as may be specified in the relevant pricing supplement, SingPost said.
Separately, mainboard-listed natural rubber supplier Halcyon Agri Corp has priced its US$200 million guaranteed perpetual securities at 3.8 per cent, it said in a bourse filing late Wednesday night.
This comes after the company in August proposed to issue guaranteed perps in place of a rights issue.
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The perps are guaranteed by Chinese state-owned enterprise Sinochem International Corp, which owns Halcyon Agri's major shareholder Sinochem International Overseas.
If the securities are not redeemed on the first call date on Nov 18, 2025, the distribution rate will be reset on that date and every five years thereafter to a rate equivalent to the initial spread of 3.345 per cent, plus the then-prevailing five-year US treasury rate and a margin of 3 per cent per annum.
The securities may be redeemed at the option of the company in whole, but not in part on Oct 18, 2025 or any distribution payment date thereafter, Halcyon Agri said.
The perps, which have been assigned a rating of Baa2 by Moody's Investors Service, are expected to be issued on Nov 18, 2020.
Net proceeds are intended to be used for operating cash flows and other fixed commitments of the group, including refinancing of its existing indebtedness.
DBS, China Construction Bank Corporation, Singapore branch and CMBC Securities Company have been appointed as joint global coordinators for the securities. The three, together with ING Bank, Singapore branch, have been appointed as joint bookrunners and joint lead managers for the perps.
SingPost shares closed at 69 Singapore cents on Wednesday, up 0.5 cent or 0.7 per cent, while Halcyon Agri shares finished at 21.5 Singapore cents, down one cent or 4.4 per cent, before their respective announcements.
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