Hyflux 6% Perpetual Securities

mindgamey

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Because I remember something similar happened to our private (public?) transport companies...billions were injected.

Billions injected because public transport is a national issue and it's all about votes.


The current sg electricity market is bad due to oversupply. Closing tuas spring probably doesn't matter.
 

neanea

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What's the point of paying these analysts?

Aren't they stating the obvious?


Hyflux 2018 retail perps 'unlikely' to be called in April, says analyst
THU, FEB 22, 2018 - 11:32 AM

THE market seems to have priced in the fact that Hyflux will not redeem its S$400 million 6 per cent retail perpetual securities, or perps, at the first call date of April 25.

http://www.businesstimes.com.sg/companies-markets/hyflux-2018-retail-perps-unlikely-to-be-called-in-april-says-analyst
 

weng0202

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Billions injected because public transport is a national issue and it's all about votes.


The current sg electricity market is bad due to oversupply. Closing tuas spring probably doesn't matter.

The problem is whether it can be “closed down” in the first place because there should be a contract with the government to run this plant for a number of years.
 

thierry

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why are the hyflux bonds maturing in sep 2018 not sold down ?
it's yield is 4.25% ?
Are these institutional player who held on to the bonds?

why are the retails bonds getting sold down ?

why are bonds buyers who bought Subordinated HYFSP 4.250% 07Sep2018 Corp (SGD) - 250k bonds not panic and selling ?

why are the retail trenched sold down only?

who are these people manipulated it down but not HYFSP 4.250% 07Sep2018 Corp (SGD) and the rest of the other bonds? why only the retail bonds affected ?

did mas investigated ?
did sgx investigated ?


http://cbonds.com/emissions/issue/160569

Jr Subordinated HYFSP 4.250% 07Sep2018 Corp (SGD) 7 Sep 2018

21no7so.jpg


2z5vt6h.jpg
 
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piakpiak

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why are the hyflux bonds maturing in sep 2018 not sold down ?
it's yield is 4.25% ?
Are these institutional player who held on to the bonds?

why are the retails bonds getting sold down ?

why are bonds buyers who bought Subordinated HYFSP 4.250% 07Sep2018 Corp (SGD) - 250k bonds not panic and selling ?

why are the retail trenched sold down only?

who are these people manipulated it down but not HYFSP 4.250% 07Sep2018 Corp (SGD) and the rest of the other bonds? why only the retail bonds affected ?

did mas investigated ?
did sgx investigated ?


http://cbonds.com/emissions/issue/160569

Jr Subordinated HYFSP 4.250% 07Sep2018 Corp (SGD) 7 Sep 2018

21no7so.jpg


2z5vt6h.jpg

The retail bond is a perpetual. They are not obligated to redeem it.

The wholesale bond you indicated ends in 6 months time where the company is expected to fulfill it's obligation to return the par value to the bondholders. The bond price is not tanking because the market feels that the company can still survive short term and they are comfortable with their chances of getting their $100 back.

Generally 6 months is a short time for a maturing bond. Usually the price of a maturing bond will trend towards par value starting about a year before.
 

Mergui219067

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Hyflux is a local company just like the 3 telcos & ComfortDelgro. :o

The telco market is over saturated yet the authority allows TPG from Australia to squeeze in.

Rail transport is lucky as it has no competition for the same line .

Cab service is not much better situation than telcos when Grab & Uber enter the market.

The current sg electricity market is bad due to oversupply. Closing tuas spring probably doesn't matter.



 

stjoe1

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From their result announcement slide presentation just released today:

Redemption of Preference shares to be deferred until Tuaspring divestment is completed; coupon yield to step up from 6% to 8% in the meantime

Will not be redeemed until Tuaspring divestment but likely they will continue pay the interest.
 

rstopel

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From their result announcement slide presentation just released today:

Redemption of Preference shares to be deferred until Tuaspring divestment is completed; coupon yield to step up from 6% to 8% in the meantime

Will not be redeemed until Tuaspring divestment but likely they will continue pay the interest.



I thought company can postpone interest payouts when co don't pay dividend on the mothershare? That's the meaning of cumulative. Eventually must redeem principal + interest (cumulated)
 

sgdividends

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Actually on the bright side, I feel hyflux is sincere in wanting to pay back their debts or bonds. Why?

With their recent dividend in specie, the upcoming coupons to perp or preference shares must be paid.

They have about 100 million excess assuming all are liquidated at book value and all debts and perp and preference shares are redeemed and loans are repaid

And it seems there is a white knight coming based on their latest financial announcement
 

rstopel

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Actually on the bright side, I feel hyflux is sincere in wanting to pay back their debts or bonds. Why?

With their recent dividend in specie, the upcoming coupons to perp or preference shares must be paid.

They have about 100 million excess assuming all are liquidated at book value and all debts and perp and preference shares are redeemed and loans are repaid

And it seems there is a white knight coming based on their latest financial announcement



Assuming liquidated at book value...

That's not going to happen as the method of valuation is the cash flow valuation and not the valuation based on construction method.

They need to wait till clean water pricing improves.
 

kehyi4

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http://www.straitstimes.com/business/hyflux-perps-wont-be-redeemed-till-divestment-of-tuaspring

Hyflux perps won't be redeemed till divestment of Tuaspring

Water treatment firm Hyflux will not redeem its retail perpetual securities until the divestment of Tuaspring is completed, it said yesterday.

A $400 million tranche of the perps will reach their first call date on April 25. The coupon yield will step up from 6 per cent to 8 per cent a year until they are redeemed.

Hyflux aimed to partially divest up to 70 per cent of Tuaspring water desalination and power plant last year, but has not. Tuaspring is held on its books at a value of $1.3 billion.

Chief executive and chairman Olivia Lum told a results briefing last night: "The last thing we want is a fire sale. We believe that we have a good asset, we have a good track record, still have a brand name. Why are we cornered? We know what we are doing.

"We have no shortage of interested parties talking to us. So we have to be very careful not to divest Tuaspring at a low price."

Hyflux has also been trying to sell the smaller Tianjin Dagang desalination plant in China since October 2016.

Ms Lum said: "People think we are going to fire sale the asset by lowering the tender price, we will not accept it. There is still upside potential for Tianjin Dagang."

Hyflux reported a net loss of $116.4 million last year, owing to continued weak electricity prices across the Singapore power market. In 2016, it made a restated profit of $3.8 million.

Group revenue excluding Tuaspring fell 57 per cent to $353.6 million last year, on lower engineering, procurement and construction work done.

Tuaspring made a net loss of $81.9 million last year, from a restated $114.5 million in 2016, as Singapore's electricity market remains oversupplied.

Ms Lum said: "We have put out an industry representation letter recently (signed by all seven generation companies) to the regulator.

"If the whole industry is losing more than a billion dollars every year, it makes the whole industry very vulnerable. I feel that it's just not sustainable."

At the end of last year, Hyflux had a cash balance of $314.2 million and it can progressively draw down from about $400 million worth of project finance loans as it achieves milestones in project construction.

Hyflux added that it is also due to collect some receivables for work done in the Middle East, North Africa region.

"A lot of the Middle East countries, their budgets were based on oil prices above US$70 a barrel," Ms Lum said.

"So we have seen many delays by the local governments, they have to drag payment. For example, in Saudi Arabia, we have to take at least six months to get our payment."
 

kelvin9813

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OMG, that time i bought the ipo was on $1, now drop until 0.5 ...

Hi all, should i continue hold the share or sell it now to cut down my risk??
please help !
 
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