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Why did SIA issue bonds at that time instead of preference shares or other forms of financing?
ReplyThanks for your comment, Iwill read their balance sheet to review if Swiber’s bond is worth the risk.
Regards,
PC
Actually, don’t think the retail market can subscribe for this.
ReplyHi Lion,
Sorry resending :
Siber Holding just announced – that it has today priced S$80,000,000 in principal amount of 5.80 per cent. fixed rate notes due 2013 (the “Notes”) under its S$500,000,000 Multicurrency
Medium Term Note Programme (the “MTN Programme”). Appreciate if you give your opinion as to why are they giving such generous dividend compare to other issuers. I am sure if they could get bank loans the interest they need to pay is even much lower as banks now are cash rich.?
Hi PC,
You have to look at their balance sheet. Possible reasons could be that banks might not want to lend if they already have a lot of debt.
Bond yields will also depend on their credit rating. Obviously, people would trust SIA more than they trust Siber. To get people to take up their bonds, Siber will obviously have to offer a higher coupon.
ReplyHi AK71,
A lot of those risk adverse people who typically leave their money in their bank would be interested in this. Not everyone invests in Reits like you do. 😀
ReplyThanks for the update, I was under the impression that I could apply for IPOs under a joint name account but I had to specify a personal CDP.
ReplyHi Daniel,
Yes, I think you are right. I have amended my post slightly. My friend used a joint bank account to apply for a joint CDP account, so it failed.
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