Friday, August 31, 2012

HDB issues fixed rate notes

The Housing and Development Board (HDB) has issued two series of Fixed Rate Notes under its S$22 billion Multicurrency Medium Term Note (MTN) Programme.

The first series, valued at S$450 million, have a coupon of 1.11 percent per annum payable semi-annually in arrears. The Notes will mature on 30 August 2017.

The 10-year Fixed Rate Notes, valued at S$500 million, have a coupon of 2.088 percent per annum payable semi-annually in arrears and will mature on 30 August 2022.

Issued in denominations of S$250,000, the Notes were offered by way of placement to investors under Sections 274 and/or 275 of the Securities and Futures Act, Chapter 289 of Singapore.

The Singapore Exchange Securities Trading Limited (SGX-ST) has given its approval in principle for the listing of the Notes.

“Admission of the Notes to the Official List of the SGX-ST is not to be taken as an indication of the merits of HDB, its subsidiaries or the notes,” said the housing board, adding that the notes are cleared through The Central Depository (Pte) Limited.

The joint lead managers for both series of Notes are DBS Bank Ltd., Standard Chartered Bank, United Overseas Bank Limited and the Singapore branches of Deutsche Bank AG and The Hongkong and Shanghai Banking Corporation Limited.

HDB may issue bonds (or Notes) under the MTN Programme to refinance existing borrowings, fund its development programmes, and for working capital requirements.

View the original article here

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