ST Engineering's US$750m, 5-year bond a hit with investors
Singapore
ST Engineering's US$750 million five-year 1.5 per cent issue has met with strong demand as the US dollar bond market bounces back.
Sold on Wednesday, April 22, the bond deal received an order book of over US$4 billion, which allowed it to tighten pricing from the initial price guidance.
"This is a rare issuer out of Singapore of extremely strong credit standing - AAA rated in fact - and their final pricing expectation at T+120bps on the back of more than US$4 billion in orders proved to be in line with where investors globally saw good value too," said Clifford Lee, DBS Bank head of fixed income. The 1.5 per cent coupon is made up of the five-year US Treasury rate plus a spread of 120 basis points (…
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