Martin Lee @ Sg
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SIA Bond Results

Public application for the SIA bonds amounted to S$346 million, way more than the S$50 million that was originally allocated to the public. As a result, SIA decided to increase the public tranche size to S$150 million.

In meeting the demand, SIA decided to give everyone who applied an allocation. Demanding on the number of SIA bonds you applied for, you will get a prorated amount.

For example, all those who applied from $10,000 to $39,000 would be given $10,000 of SIA bonds.

The full SIA bond allocation details can be found here:

Sia Bond Result

There is one exception though – those with invalid applications. This group of people will have their money fully refunded without any interest.

I know of a friend who applied for SIA bonds using a joint bank account/CDP account. It was mentioned somewhere in the 100+ page offering document that application to joint CDP accounts will have issues.

As a result, his money was fully refunded. My friend only found out when his money was fully refunded after the application date has closed and he realised what had gone wrong by checking the offer document.

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11 comments
Gary says 8 years ago

Why did SIA issue bonds at that time instead of preference shares or other forms of financing?

Reply
    lioninvestor says 8 years ago

    Dear Gary,

    It’s a cheap source of financing.

    Reply
PC says 8 years ago

Thanks for your comment, Iwill read their balance sheet to review if Swiber’s bond is worth the risk.
Regards,
PC

Reply
    lioninvestor says 8 years ago

    Actually, don’t think the retail market can subscribe for this.

    Reply
PC says 8 years ago

Hi 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.?

Reply
    lioninvestor says 8 years ago

    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.

    Reply
Jasmin says 8 years ago

I can’t think of any IPO which allows a joint CDP a/c.

Reply
AK71 says 8 years ago

I do not think this is a good deal. I wonder at the strong response but rationalised that there is still much risk aversion in the air.

Reply
    lioninvestor says 8 years ago

    Hi 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. 😀

    Reply
DanielP says 8 years ago

Thanks 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.

Reply
    lioninvestor says 8 years ago

    Hi 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.

    Reply
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