Singapore Airlines *Official* (SGX:C6L)

[5408854088]

SINGAPORE Airlines (SIA) has raised US$500 million via its first US dollar-denominated bond issue. The notes, due 2026, will be issued at 99.573 per cent of their principal amount with an annual coupon of 3 per cent.

The national carrier said on Thursday that the issuance was oversubscribed with the final demand tallying at more than US$2.85 billion, anchored by high-quality institutional investors including real money asset managers.

https://www.businesstimes.com.sg/co...us500m-in-oversubscribed-us-dollar-debt-debut

 

[skpuppy]

Impressive. Lol! With this kind of CEO and management team, so many ppl stick to them. Seems like SQ have some die heart fans like Tesla

 

[reddevil0728]

Impressive. Lol! With this kind of CEO and management team, so many ppl stick to them. Seems like SQ have some die heart fans like Tesla

probably another cult? like an apple and tsla. just diff kind

 

[durain]

probably another cult? like an apple and tsla. just diff kind

But this issue is a corporate bond issue to institutional investors leh. One buy in minimum 6-fig . Institutional cult? Haha

 

[reddevil0728]

But this issue is a corporate bond issue to institutional investors leh. One buy in minimum 6-fig . Institutional cult? Haha

Maybe they see something that retail don’t see?

 

[发哨子2020]

They bought no scared .
They scared no buy .

They should know what they are doing.

 

[aiptasia]

Impressive. Lol! With this kind of CEO and management team, so many ppl stick to them. Seems like SQ have some die heart fans like Tesla

Seriously, why would one stick with a stock that has balloning debt levels and diminishing cash flow in a deadbeat industry? Just because it's a Singapore so-called blue chip company?

 

[cherry6]

SINGAPORE Airlines (SIA) has raised US$500 million via its first US dollar-denominated bond issue. The notes, due 2026, will be issued at 99.573 per cent of their principal amount with an annual coupon of 3 per cent.

The national carrier said on Thursday that the issuance was oversubscribed with the final demand tallying at more than US$2.85 billion, anchored by high-quality institutional investors including real money asset managers.

https://www.businesstimes.com.sg/co...us500m-in-oversubscribed-us-dollar-debt-debut

Spoiler

Singapore Airlines raises US$500m in oversubscribed US dollar debt debut
THU, JAN 14, 2021 - 10:17 AM UPDATED THU, JAN 14, 2021 - 10:50 AM
VIVIENNE TAY
nz_sia_140121.jpgSIA has raised US$500 million via its first US dollar-denominated bond issue. ST PHOTO: ALPHONSUS CHERN
SINGAPORE Airlines (SIA) has raised US$500 million via its first US dollar-denominated bond issue. The notes, due 2026, will be issued at 99.573 per cent of their principal amount with an annual coupon of 3 per cent.

The national carrier said on Thursday that the issuance was oversubscribed with the final demand tallying at more than US$2.85 billion, anchored by high-quality institutional investors including real money asset managers.

The notes fall under SIA's S$10 billion multicurrency medium-term note programme. The airline expects to issue the notes on Jan 20, 2021, subject to customary closing conditions, it said in a bourse filing. The expected maturity date for the notes is July 20, 2026.

The issue price was set at US treasuries plus 260 basis points, according to a term sheet seen by Reuters. The deal will also not be offered to investors based in the US.


Citigroup was the sole global coordinator for the issuance. The joint bookrunners were Citigroup, HSBC and BofA Securities, and the joint lead managers were Citigroup, HSBC's Singapore branch and Merrill Lynch (Singapore).


https://www.businesstimes.com.sg/co...us500m-in-oversubscribed-us-dollar-debt-debut

USD500M of SIA 3.0% bonds.

I want to enquire if the acclaimed US$2.85B demand is just fake news, since dunno if have a minimum bid for the bonds (e.g. what if most of the bids were too ridiculously/ meaninglessly low, like 10-20¢ only?).

Obviously SIA overestimated the demand for its bonds, that is why they priced the interest rate unattractive low, resulting in lack luster response in terms of price bid (e.g. the cut off threshold to own the bond came in at below $1, which means that investors value the SIA bond at below the value that SIA priced them).

If the interest rate were sufficient, then successful people would have all bid more than $1 for the $1 par value bond (just like mkt is today paying $1.06 for the Temasek 2.7% 231025XB bond now). As it is, now the USD SIA bond will end up beginning trading BELOW par value (IPO at 99.573¢ (or 99.573% of par value according to BT report)) , which is a negative publicity for the airline concerned.

And I just wonder if people are allowed to say bid 10 or maybe 50¢ for this bond, since adding such very very low ball bids and then saying that the auction was oversubscribed is just pure nonsense, since I too can easily place a humongous sized bid at say fractions of 1¢ a piece, just with some spare change in my pocket.

TLDR: There was actually lackluster demand for SIA USD denominated $500M worth of SIA bonds as evidenced by fact that they were issued below par value.

Correct?

https://www.businesstimes.com.sg/co...us500m-in-oversubscribed-us-dollar-debt-debut

 

[reddevil0728]

Seriously, why would one stick with a stock that has balloning debt levels and diminishing cash flow in a deadbeat industry? Just because it's a Singapore so-called blue chip company?

Maybe this is the simple minded people style of fomo

 

[reddevil0728]

Spoiler

Singapore Airlines raises US$500m in oversubscribed US dollar debt debut
THU, JAN 14, 2021 - 10:17 AM UPDATED THU, JAN 14, 2021 - 10:50 AM
VIVIENNE TAY
nz_sia_140121.jpgSIA has raised US$500 million via its first US dollar-denominated bond issue. ST PHOTO: ALPHONSUS CHERN
SINGAPORE Airlines (SIA) has raised US$500 million via its first US dollar-denominated bond issue. The notes, due 2026, will be issued at 99.573 per cent of their principal amount with an annual coupon of 3 per cent.

The national carrier said on Thursday that the issuance was oversubscribed with the final demand tallying at more than US$2.85 billion, anchored by high-quality institutional investors including real money asset managers.

The notes fall under SIA's S$10 billion multicurrency medium-term note programme. The airline expects to issue the notes on Jan 20, 2021, subject to customary closing conditions, it said in a bourse filing. The expected maturity date for the notes is July 20, 2026.

The issue price was set at US treasuries plus 260 basis points, according to a term sheet seen by Reuters. The deal will also not be offered to investors based in the US.


Citigroup was the sole global coordinator for the issuance. The joint bookrunners were Citigroup, HSBC and BofA Securities, and the joint lead managers were Citigroup, HSBC's Singapore branch and Merrill Lynch (Singapore).


https://www.businesstimes.com.sg/co...us500m-in-oversubscribed-us-dollar-debt-debut

I want to enquire if the acclaimed US$2.85B demand is just fake news, since dunno if have a minimum bid for the bonds (e.g. what if most of the bids were too ridiculously/ meaninglessly low, like 10-20¢ only?).

Obviously SIA overestimated the demand for its bonds, that is why they priced the interest rate unattractive low, resulting in lack luster response in terms of price bid (e.g. the cut off threshold to own the bond came in at below $1, which means that investors value the SIA bond at below the value that SIA priced them).

If the interest rate were sufficient, then successful people would have all bid more than $1 for the $1 par value bond (just like mkt is paying $1.06 for the Temasek 2.7% 231025XB bond now). As it is, now the USD SIA bond will end up beginning trading BELOW par value, which is a negative publicity for the airline concerned.

And I just wonder if people are allowed to say bid 10 or maybe 50¢ for this bond, since adding such very very low ball bids and then saying that the auction was oversubscribed is just pure nonsense, since I too can easily place a humongous sized bid at say fractions of 1¢ a piece, just with some spare change in my pocket.

TLDR: There was actually lackluster demand for SIA USD denominated $500M worth of SIA bonds is thus issued below par value.


https://www.businesstimes.com.sg/companies-markets/singapore-airlines-raises-us500m-in-oversubscribed-us-dollar-debt-debut

Enquire with who?

 

[cherry6]

Enquire with who?

Just saying only. Anyone with the pdf of the offer statement can post link here.

SIA and many corporates (like Hyflux), probably just wayang wayang, publish good news and hide bad.

I strongly suspect that vast majority of the USD bond bidders bid peanuts, that is why the final bid price for the USD$500M in bonds is below par (only 99.573¢) .

SIA probably have over allotment option but omitted using it because at the minimum investment amount, the bids were already below par. To accept more bond investors would reveal to the world how high the SIA bond yield would be and thus make future fundraising even more expensive.

This means that the next round of SIA fund raising, they will have to promise a much better than 3.0% yield.

My suspicion is that the next fund raising that SIA will do will be in euro dollars because that currency the interest rate is so low (negative even).

 

[发哨子2020]

US$2.85 billion fighting for US$500 million bond .
And some SSI Warriors have many doubts.

 

[cherry6]

US$2.85 billion fighting for US$500 million bond .
And some SSI Warriors have many doubts.

Not really fighting lah.

Mostly all are lousy low ball offers. Dunno how many offered US 20-50¢ for the us$1 par value bond.

Even at us$500M level, the amount offered IS quite below PAR (99.573¢) .

So SIA issued $500M but amount that SIA received falls short by almost half a percent less because all investors low ball, sending SIA the message that they buay pai seh, so high risk, offer so low yields, so they all low ball and SIA boh pian, have to accept the low ball offers and also ends up paying higher interest rates for the debt.

But the SIA spin doctors are good, spin until positive news, but if u read between the lines, investors are doubtful about SIA credibility and thus bidding lesser for SIA debt.

 

[发哨子2020]

Cherry :
You got such insider news ?
From where ?

 

[cherry6]

Cherry :
You got such insider news ?
From where ?

Business times news report I appended?

Please read newspaper more often.


https://www.businesstimes.com.sg/companies-markets/singapore-airlines-raises-us500m-in-oversubscribed-us-dollar-debt-debut

 

[Asphodeli]

Wait for their FY2020 report in April. The rabbit hole goes deep

Sent from Xiaomi MI 9 LITE using GAGT

 

[reddevil0728]

Just saying only. Anyone with the pdf of the offer statement can post link here.

SIA and many corporates (like Hyflux), probably just wayang wayang, publish good news and hide bad.

I strongly suspect that vast majority of the USD bond bidders bid peanuts, that is why the final bid price for the USD$500M in bonds is below par (only 99.573¢) .

SIA probably have over allotment option but omitted using it because at the minimum investment amount, the bids were already below par. To accept more bond investors would reveal to the world how high the SIA bond yield would be and thus make future fundraising even more expensive.

This means that the next round of SIA fund raising, they will have to promise a much better than 3.0% yield.

My suspicion is that the next fund raising that SIA will do will be in euro dollars because that currency the interest rate is so low (negative even).

Who benefit?

 

[durain]

Mostly all are lousy low ball offers. Dunno how many offered US 20-50¢ for the us$1 par value bond.

Even at us$500M level, the amount offered IS quite below PAR (99.573¢) .

So SIA issued $500M but amount that SIA received falls short by almost half a percent less because all investors low ball, sending SIA the message that they buay pai seh, so high risk, offer so low yields, so they all low ball and SIA boh pian, have to accept the low ball offers and also ends up paying higher interest rates for the debt.

Ahh cherry is back, i love reading your commentary to sleep, cos it makes a good bedtime story.

You seem to think corporate bond issuance works like buying a handbag on Carousell. Whats more you use a retail bond like Temasek 2.7% to compare against a corporate bond issuance.

Why not instead of retail bonds, which are different, we look at temasek's bond issue from last year 2020 to institutional investors.

https://www.businesstimes.com.sg/banking-finance/temaseks-us275b-bonds-oversubscribed

"The 10-year paper was priced at a 47.5 bps spread over the 10-year benchmark US Treasures, and issued at 98.821 per cent to give a yield to maturity of 1.125 per cent per annum."

Please use your cherry logic to explain why temasek bonds also oversubscribed, compare to sia's latest issue? if 99.573 is "bid peanuts", then 98.821 is..."bid potato chips??" Going by your logic, since temasek bonds all below par, its bad? I thought you say they're quite good based on their retail issue? How come their institutional bond issuance more "cui". Issit also lowball

You're like a mad scientist, take a retail bond, compare to a corporate bond, then extrapolate any negative info. Actually, you're not too bad of a spin doctor yourself

Please read newspaper more often.

Considering that you're not that brilliant yourself, this is quite a rude way to talk to another forum member. 发哨子2020 probably got more breath in knowledge than you cos he doesn't obsess over one stock.

 

[reddevil0728]

Ahh cherry is back, i love reading your commentary to sleep, cos it makes a good bedtime story.

You seem to think corporate bond issuance works like buying a handbag on Carousell. Whats more you use a retail bond like Temasek 2.7% to compare against a corporate bond issuance.

Why not instead of retail bonds, which are different, we look at temasek's bond issue from last year 2020 to institutional investors.

https://www.businesstimes.com.sg/banking-finance/temaseks-us275b-bonds-oversubscribed

"The 10-year paper was priced at a 47.5 bps spread over the 10-year benchmark US Treasures, and issued at 98.821 per cent to give a yield to maturity of 1.125 per cent per annum."

Please use your cherry logic to explain why temasek bonds also oversubscribed, compare to sia's latest issue? if 99.573 is "bid peanuts", then 98.821 is..."bid potato chips??" Going by your logic, since temasek bonds all below par, its bad? I thought you say they're quite good based on their retail issue? How come their institutional bond issuance more "cui". Issit also lowball

You're like a mad scientist, take a retail bond, compare to a corporate bond, then extrapolate any negative info. Actually, you're not too bad of a spin doctor yourself



Considering that you're not that brilliant yourself, this is quite a rude way to talk to another forum member. 发哨子2020 probably got more breath in knowledge than you cos he doesn't obsess over one stock.

Why cherry got vendetta against sia ah?

 

[发哨子2020]

A cherry thought he is the spiky durian .
Can bang here and there .