FPL green notes 5 years 4.49% pa

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lzydata

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Frasers Property Limited launches Singapore’s first corporate green retail notes

- Up to S$420 million five-year green notes due 2027 (subject to the Upsize Option, as described below) offer an interest rate of 4.49% per annum with semi-annual payments
- Net proceeds from the inaugural green retail notes issuance to be used for financing or refinancing eligible green projects
- Public Offer opens from 9:00 a.m. on 9 September 2022; closes at 12 noon on 14 September 2022

https://links.sgx.com/FileOpen/FPL Press Release.ashx?App=Announcement&FileID=731189
Launch announcement: https://links.sgx.com/FileOpen/FPL Launch Announcement.ashx?App=Announcement&FileID=731188

Offering circular: https://links.sgx.com/1.0.0/corporate-announcements/2QXCU93VUVU9YIV9/731185_Offering Circular.pdf
Pricing supplement: https://links.sgx.com/1.0.0/corporate-announcements/2QXCU93VUVU9YIV9/731186_Pricing Supplement.pdf
Product highlights sheet: https://links.sgx.com/1.0.0/corpora...VUVU9YIV9/731187_Product Highlights Sheet.pdf
 
hyperfuse

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wah so complicated.

similar to TBills?

interest and capital guaranteed at maturity?
 
hyperfuse

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lzydata said:
Yes. It's just like a bond. FPL also issued retail bonds before as Frasers Centrepoint Limited 3.65% pa, which matured in May.
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so if i were to put in simple terms, this is a 5 year commitment, interest at 4.49 percent per annum with capital guaranteed upon maturity in 5 years.
 
hyperfuse

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lzydata said:
Yes and it will be listed on SGX so people can buy or sell it anytime.
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so selling before maturity, the principal will be affected by price volatility, but maintain till maturity, then interest and capital guaranteed.

not bad.

Any potential risks this might have over SSB?
 
Guojing88

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lzydata said:
Yes. It's just like a bond. FPL also issued retail bonds before as Frasers Centrepoint Limited 3.65% pa, which matured in May.
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Yes, I bought their 7 year bond at 2015 which was offering 3.65%. Will probably put some into this new one as well.
 
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maumu

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can we use SRS? or cash only? can't seem to see from the factsheet...
 
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jayou8

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maumu said:
can we use SRS? or cash only? can't seem to see from the factsheet...
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Use of CPF and SRS Funds The Green Notes are not eligible for inclusion under the CPF Investment Scheme – Ordinary Account. The Green Notes are also not eligible for the Supplementary Retirement Scheme. Accordingly, prospective investors cannot use their CPF Funds or SRS Funds to apply for the Green Notes under the Offer. Investors with SRS accounts should consult their stockbrokers and the relevant banks in which they hold their SRS accounts if they wish to purchase the Green Notes from the market using SRS funds, after the completion of the Offer and the listing of such Green Notes on the Main Board of the Singapore Exchange Securities Trading Limited (the "SGX-ST")
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hyperfuse said:
oh....... lzydata mentioned it is though.
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I mean, you know, I personally do not like questions or statements on "capital guarantee".

The question is who is doing the guaranteeing. Is it the government, Temasek, an insurance company, a corporate like FPL etc?

Doesn't mean anything. You still have to consider what is the credit risk.

So yes, like with a corporate bond, this green note is guaranteed by FPL. Corporates are not going to raise money from bonds while saying they do NOT guarantee that you will get your interest and money back. Who is going to buy it then.
 
hyperfuse

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lzydata said:
I mean, you know, I personally do not like questions or statements on "capital guarantee".

The question is who is doing the guaranteeing. Is it the government, Temasek, an insurance company, a corporate like FPL etc?

Doesn't mean anything. You still have to consider what is the credit risk.

So yes, like with a corporate bond, this green note is guaranteed by FPL. Corporates are not going to raise money from bonds while saying they do NOT guarantee that you will get your interest and money back. Who is going to buy it then.
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haha so bottom line, apart from all the extra jargon,

capital is guaranteed by FPL, unless they default..

I mean isn't this an important question people will definitely want to know. Basically the 2 most important things when people buy a bond, FD, endowment or any investment product is these 2 things.

Interest and capital. The 2 main takeaways are always,
1) is the interest guaranteed or non guaranteed.
2) is the capital guaranteed or non guaranteed.

All the other specs, terms and requirements of all the diff product be it a bond, FD, endowment plan etc...not so important but only the main 2 above.

So with common sense logic, definitely this question is a valid question right? Why you dont like answering this type of questions haha..
 
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silverbomb

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Guojing88 said:
Yes, I bought their 7 year bond at 2015 which was offering 3.65%. Will probably put some into this new one as well.
Click to expand...
you hold all the way till maturity? was your bond easily sellable (but at a slight loss)?
 
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lzydata

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hyperfuse said:
haha so bottom line, apart from all the extra jargon,

capital is guaranteed by FPL.

I mean isn't this an important question people will definitely want to know. Basically the 2 most important things when people buy a bond, FD, endowment or similar product is these 2 things.

Interest and capital. The 2 main takeaways are always,
1) is the interest guaranteed or non guaranteed.
2) is the capital guaranteed or non guaranteed.

All the other specs, terms and requirements of all the diff product be it a bond, FD, endowment plan etc...not so important but only the main 2 above.

So with common sense logic, definitely this question is a valid question right? Why you dont like answering this type of questions haha..
Click to expand...

Because it is not a binary, either guaranteed or not guaranteed. The Singapore government is a stronger credit than Temasek. Temasek is a stronger credit than a corporate like FPL. FPL is a stronger credit than a SME. And a SME is probably a stronger credit than lending to Tan Ah Kow.

If you mean is the interest fixed then yes, it is fixed. And corporates will want to return your capital in full and on time, or else they will not be able to borrow money again, whether from retail investors or institutions.

I do blame products like endowment or other insurance policies which only give benefit illustrations - those are indeed not guaranteed. That's why they are called illustrations.
 
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