STT sells new S$300m perpetual issue at 5 per cent

Singapore

SINGAPORE Technologies Telemedia (STT) has sold a new S$300 million perpetual issue at 5 per cent on Thursday.

Orders reached for STT's maiden perpetual deal - which is also the first perp transaction for 2019 - was about S$700 million, and the initial price guidance was low 5 per cent.

The last perp transaction in the Singapore dollar bond markets was the S$700 million transaction for UBS in November 2018.

The STT issue is sold under its S$2 billion multicurrency debt issuance programme, according to the term sheet seen by The Business Times.

The first time that STT - which is wholly owned by Temasek Holdings - tapped the debt market was when it issued a S$300 million senior bond in November 2015.

The new issue is NC5 which means that it will not be called or redeemed before year five. There is a 100 basis point step-up and reset from year 10.

STT is a strategic investor focused on investing in, operating and managing a portfolio of companies and investments in the communications, media and technology space globally, said the term sheet.

It is an active investor and shareholder that takes a long-term view of its investments and aims to create sustainable value for its stakeholders, it said.

The issuer's key business segments comprise communications and media services, enterprise services, data centres and emerging technologies.

"It has a strong digital ecosystem, deep operations and industry experience across its business segments, and is well positioned to leverage on key global technology trends such as the high growth in intellectual property traffic, fixed mobile convergence, quadruple-play offerings, the proliferation of data centres and the adoption of emerging technologies, to tap on new growth opportunities," it said.