Martin Lee @ Sg
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CapitaMalls Asia Bond Issue

Looking for the latest CapitaMalls Asia Bond? Click here.

CapitaMalls Asia is the next company to issue bonds to retail investors after the previous tranche from SIA.

There are offering two options, a 1-year bond paying an interest of 1% and a 3-year bond paying an interest of 2.15% p.a. This is the same interest that was paid by SIA.

The bonds will be issued in denominations of $1000 and the minimum amount for application is $2000.

In the event either bond fails to gather at least $20 million in subscriptions, CapitalMalls Asia has the right to cancel the issue.

The application starts from 9am 7th January 2011 and will close on 17th January 2011 at 12pm. It can be done via the ATMs of the local banks and internet banking of DBS.

CPF and SRS are not available for this particular bond offering.

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21 comments
ronald says 8 years ago

Dear Lion Investor,

Many thanks for the reply. How would we know if the subscription was sucessful? Would we be sent a letter ot statement?

Reply
    Jasmin says 8 years ago

    Known quite some time ago; either $$ return to your bank a/c or check cdp online.

    Reply
Mike says 8 years ago

Looks to me this bond issue is very similar to the local banks’ NCPS issues which is currently trading at yield of about 4.6%. Does not really make sense to me why I would take up the bonds issues which pays half the NCPS yield and much less liquid than the NCPS.

Reply
    lioninvestor says 8 years ago

    Dear Mike,

    There are some differences between a bond and preferred shares.

    1) Bonds come with fixed maturity date.

    2) Dividends of preferred shares are non-guaranteed. The company can choose not to pay a dividend in any one year. If they do not, they must not be paying any dividends to regular shareholders.

    Reply
JoJo says 8 years ago

When will the results for the IPO be released?

Reply
ronald says 8 years ago

Hi, I am new to bonds. if we apply to it through the ATM before the tranche closes but after it is full subscribed, will we get the money back?

Reply
    lioninvestor says 8 years ago

    Dear Ronald,

    If you do not get allocated, they will refund you the money.

    Reply
brian says 8 years ago

hi,

is there any admin fees for buying this bond thru IPO?

Reply
    lioninvestor says 8 years ago

    Yes, should be $2 admin fee.

    Reply
Singaporean says 8 years ago

How good can this be? They are borrowing money from you and give you a low interest. Somemore you cannot recall your loan even if you see them heading towards a cliff otherwise they will penalise you. If their business do well then they pay you a pittance, if it failed you lost your money. What kind of a Kobayashibaru is that?

Reply
    JoJo says 8 years ago

    Bank also borrow money from us and give us 0.125% which is far worse.

    You can “recall” your loan by selling your bonds on the SGX like a normal share. Subjected to price fluctuation and transaction cost. The point of bond is fixed steady income just like fixed deposit.

    Reply
Jasmin says 8 years ago

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1103058/1/.html
Coupon/interest to be paid annually.

Reply
Peppy says 8 years ago

Will the coupon paid annually or semi-annually? Assuming I invest in SGD 10,000 in 3 year bond, what is the rate of coupon?

Reply
    Jasmin says 8 years ago

    The coupon may be paid annually. Pse confirmed.
    I recalled SIA bonds launched recently was for 5 years (???) and coupon rate same.

    Reply
Tan says 8 years ago

Will this bond not pay us interest if the company not doing well like share ?

Reply
    lioninvestor says 8 years ago

    It will continue to pay unless the company defaults on it obligations.

    Reply
Temperament says 8 years ago

Hi.
I mean how come you have such bond offer in the current market?
The working class is really very pitiful now if they dare not park their “excess” money in equities.
They are taking this “unfortunate almost zero bank interest rate return” time to prey on us the common folks.
Sad.

Reply
Temperament says 8 years ago

Hi,
What a joke.
CPF’s & SRS’s funds are not allowed.

Reply
    lioninvestor says 8 years ago

    No point to use CPF right?

    Reply
Johnny says 8 years ago

Hi, I am new to bond, just would like to know whether our prinicipal is protected? Thx Johnny

Reply
    lioninvestor says 8 years ago

    Dear Johnny,

    Principal is protected as long as

    1) You do not sell before maturity.
    2) The company does not go bust and default.

    Reply
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