Martin Lee @ Sg
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F&N Bonds to be Issued

Fraser and Neave (F&N) is the next company here to issue corporate bonds to the public.

F&N is offering S$150 million of five-year (2.48% p.a.) bonds and S$150 million of 7-years (3.15% p.a.) bonds.

The bonds will be issued in denominations of S$1,000 (minimum of 5k) and will pay interest semi-annually. They will be issued on or about 28 March 2011 and will be cleared through The Central Depository (Pte) Limited (the “CDP”).

Applications for the Public Offer Bonds must be made at any ATM of DBS Bank (including POSB), Oversea-Chinese Banking Corporation Limited or United Overseas Bank Limited or its subsidiary, Far Eastern Bank Limited or through the internet banking website of DBS Bank (the “Electronic Applications”).

An application for the Public Offer Bonds is subject to a minimum of S$5,000 in principal amount of Bonds per application or higher amounts in integral multiples of S$1,000 thereof.

The offer document can be found here: F-&-N Bonds Prospectus

Timeline for the F&B bond issue is as follows:

Lodgment of Offer Information Statement : 16 March 2011

Opening date and time for applications for the Public Offer Bonds : 17 March 2011 at 9.00 a.m.

Last date and time for applications for the Public Offer Bonds : 23 March 2011 at 10.00 a.m.

Balloting of applications for the 5-Year Bonds under the Public Offer, if necessary. Commence returning or refunding of application moneys to unsuccessful or partially successful applicants : 24 March 2011

Balloting of applications for the 7-Year Bonds under the Public Offer, if necessary. Commence returning or refunding of application moneys to unsuccessful or partially successful applicants : 25 March 2011

Expected Issue Date of the Bonds : 28 March 2011

Expected date of commencement of trading of the Bonds on the Main Board of the SGX-ST : 29 March 2011

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14 comments
Askquestion says 8 years ago

Hi, can i buy on behalf of someone? Meaning he use my cdp account number but their own cash? Thanks..

Reply
    Askquestion says 8 years ago

    Oh.. Is possible..

    Reply
    lioninvestor says 8 years ago

    That means he has to transfer the money to you and the bonds will be held under your name.

    Reply
      ion says 8 years ago

      that’s even more risky.. unless it’s for ur immediate relative..

      Reply
        sender says 8 years ago

        while technically possible, such strategy mostly use by people who want to avoid detections by “Big Brothers”. Even if you personally knows the other party well, it’s better to find out why the other party can’t /won’t want to hold in his own name.

        Reply
Jasmin says 8 years ago

Am thinking of buying the 7 years due to slightly payout but note that the longer my $$ is not with me, the higher risk I face.

Reply
    sender says 8 years ago

    sounds familiar, heard it often times. In the past, some of our older ancestors liked to keep their money close to themselves – like under their pillows.

    but looking around us, it looks like the rich people tend to have a longer term horizon when it comes to investments. I not sure, it looks like that way. However, there is an element of uncertainty with money that one cannot access to for a long time like our CPF.

    Reply
Tan says 8 years ago

Bond credit rating

http://en.wikipedia.org/wiki/Bond_credit_rating

Reply
    sender says 8 years ago

    Thank you for the helpful link.

    In term of financial health, looks like A1 is in fifth or sixth position. The table does not give the probability percentage of an A1 type failing base on past historical data.

    I also check with a great grand uncle. He don’t know anything about ratings but when i ask him what he thinks of F&N. His reply: “Oh! ang-sigh ah! (Red Lion ah!). Good good!” He said that company been around even before MM was born.

    Is it safe to invest base on past reputation?

    Reply
sender says 8 years ago

Is it better to buy the 7 years with higher payout?
also, hear it is not rated but as good as A1 bond. What’s A1?

need some helps here?? (so quiet here lately..)

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sender says 8 years ago

i’m thinking of buuying some. With two maturity dates, which to apply?

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Nuts says 8 years ago

I’d rather buy Japanese dividend stocks.

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Ron says 8 years ago

Considering that it is not a government-linked company, the return is terrible. I wonder what the level of rating will be.

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Jasmin says 8 years ago

Any takers here?

Reply
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