Company bonds

[SpeedingBullet]

Another issue by MGCCT

- New Mapletree Greater China Commerical Trust SGD 7yrs announced
- Expected issue rating: Baa1 (Moody’s)
- Coupon: 3.20%

 

[Shiny Things]

It's not a corporate bond, but it's right up there with the 10yr unrated Capland and the Mexican century bond in the "no thanks" category: Spain, land of shuttered airports and 25% unemployment, has just sold a 50yr bond yielding a measly 4%.

 

[SpeedingBullet]

It's not a corporate bond, but it's right up there with the 10yr unrated Capland and the Mexican century bond in the "no thanks" category: Spain, land of shuttered airports and 25% unemployment, has just sold a 50yr bond yielding a measly 4%.

my bad, yeah it's a note offer, under their MTN programme (same with most REITs)

 

[Shiny Things]

my bad, yeah it's a note offer, under their MTN programme (same with most REITs)

Oh - nononono, I wasn't trashing the Mapletree bond; I was talking about the new SPGB issue and how it's not a corporate bond but it's still awfully expensive.

 

[wondrdoggie]

Those of you keen to know more about the mapletree bond (launched 28 August):

**MAPLETREE GREATER CHINA COMMERCIAL TRUST SGD 7YR - IPG**
Issuer : Mapletree Greater China Commercial Treasury Company (HKSAR) Limited
Guarantor : Unconditionally and irrevocably guaranteed by DBS Trustee Limited (in its capacity as trustee of Mapletree Greater China Commercial Trust)
Issuer Rating : Baa1 (Moody's)
Expected Issue Rating : Baa1 (Moody's)
Status : Senior Unsecured
Format : Bearer, Reg S off Issuer's US$1.5bn Euro Medium Term Securities Programme
Tenor : 7 years
Issue Size : TBD
Initial Price Guidance :3.30% area
Coupon Payment : Fixed Rate, semi-annual, actual/365 (fixed)
Details : SGD250k denoms, Singapore Law, SGX Listing
Selling Restrictions : As per OC, primarily S274 & S275 of Singapore SFA
UOP : As per Programme
Sole Bookrunner : DBS Bank Ltd.
Clearing : CDP
Timing: This week's business, as early as today
AM: 75%
Risk Rating: Low

Credit Highlights:
- Mapletree Greater China Commercial Trust ("MGCCT") is a Singapore real estate investment trust, which invests in a diversified portfolio of income producing real estate or real estate-related assets used predominantly for commercial purposes in the Greater China region.

- The current portfolio has two investments: Festival Walk in Hong Kong, and Gateway Plaza in Beijing.

- Festival Walk is a landmark territorial retail mall, and has a lettable area of 798,372 sq ft. It enjoys 100% occupancy since completion in 1998.

- Gateway Plaza is a premier Grade A office building in the prime Lufthansa Area in Beijing, and has a lettable area of 1,145,882 sq ft. As of 30 Jun 2014, its occupancy stands at 98.6%.

- MGCCT’s gross revenue for 1Q FY14/15 was S$63.8 million (increased by 8.6% over 1Q FY13/14) and net property income was S$52.6 million (increased by 9.9% over 1Q FY13/14).

- Based on 1Q FY14/15 gross revenue, 74.1% was contributed by Festival Walk and 25.9% by Gateway Plaza. Based on 1Q FY14/15 net property income, 71.9% was contributed by Festival Walk and 28.1% by Gateway Plaza.


Comps:

CCT 2.98 2021 (Baa1 by Moody's) - 100.50, 2.90%
Mapletree Industrial Trust 3.75 2019 (BBB+ by Fitch) - 104.50, 2.68%
Mapletree Industrial Trust 3.65 2022 (BBB+ by Fitch) - 101, 3.50%

 

[Mecisteus]

Oh - nononono, I wasn't trashing the Mapletree bond; I was talking about the new SPGB issue and how it's not a corporate bond but it's still awfully expensive.

i think you meant cheap? cheap for the issuing country. awfully low rate for the buyers. if its me, i will demand 10%.