Tuan Sing's Superluck to issue senior secured 3-year 2.8% notes

SUPERLUCK Properties, a wholly-owned subsidiary of mainboard-listed property developer Tuan Sing Holdings, is looking to issue three-year, Singapore-dollar notes carrying a fixed coupon of 2.8 per cent.

The senior secured notes will be issued under Superluck's newly established S$500 million multicurrency medium-term note programme, which was just announced on Sunday night.

They will be guaranteed by Tuan Sing, and secured by a mortgage over two properties owned by Superluck, according to a DBS term sheet released on Monday afternoon to potential investors. The properties are 18 Robinson Road and the strata units #11-01 and #11-02 of Far East Finance Building at 14 Robinson Road.

DBS Bank and United Overseas Bank are the joint lead managers and joint bookrunners.

The principal amount of the notes has not been finalised, although they are to be issued in denominations of S$250,000. The interest will be payable semi-annually in arrears in April and October each year, starting from April 2020.

The bonds, as yet unrated, carry the highest product risk rating of "5" on a scale of 1 to 5, according to the term sheet.