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Junk debt in Singapore getting riskier

Three out of every 10 notes sold last year now yielding more than 6%

Companies wanting to sell to retail investors must have a credit score at least one level above the lowest investment grade, be cashflow positive and have had no net losses on average for the past three years or have sold more than S$500 million of notes over the past five years. Bonds must be listed on an exchange and can't be convertible into stock.

DEMAND for higher returns in Singapore bonds from the city's swelling private banking industry has brought with it greater risks.

Three out of every 10 notes sold last year are yielding more than 6 per cent. Halcyon Agri Corp went to debtholders last month asking them to waive interest...