Singapore Technologies Telemedia not redeeming S$350 million, 5% perpetual at first call
Tay Peck Gek
SINGAPORE Technologies Telemedia will not be redeeming at the first call date in January 2024 of its S$350 million, 5 per cent subordinated perpetual securities issued five years ago.
In its regulatory filing to the Singapore Exchange on Tuesday (Dec 5), the Temasek-backed investor in communications and media, data centres and infrastructure technology also announced that there will not be a reset of the distribution rate on the first call date on Jan 17, 2024.
The coupon rate will remain at 5 per cent per annum till the first reset date on Jan 17, 2029 and will reset at each date falling every 10 years thereafter if the securities are not redeemed by then.
Perpetual securities have no fixed final redemption date.
Singapore Technologies Telemedia said that the decision to not redeem the perpetual securities was arrived at after having assessed the various options with its long-term interests in mind as well as taking into consideration the current macroeconomic environment.
The factors considered included the existing market conditions not being conducive for the issuance of similar perpetual securities at a lower yield; prudent management of its capital structure; as well as having the option to redeem the securities on subsequent call dates.
The Bondsupermart website indicated that this perpetual was trading at bid and ask yields to maturity of about 6 per cent on Tuesday.
Copyright SPH Media. All rights reserved.
