|
|
| Genting Singapore | |
| Size | S$1.8 billion perpetual subordinated capital securities |
| Joint global coordinators | HSBC, CIMB Bank, DBS, Deutsche Bank and JPMorgan |
| return to the Asia Deals of the Year index | |
In March, casino operator Genting Singapore’s S$1.8 billion ($1.46 billion) perpetual subordinated capital securities marked the company’s inaugural bond issuance and its first foray into the Singapore dollar bond markets. The deal was the largest corporate hybrid in a local-currency market in Asia, the largest Singapore dollar-denominated corporate hybrid issue to date and the largest single-tranche Singapore dollar-denominated bond to date. According to HSBC, the deal attracted an overwhelming response from international and domestic investors, with participation from offshore accounts to the tune of 42% of the total deal size. The allocation was also well spread out regionally, with 58% of the offering distributed in Singapore, 24% in Malaysia, 12% in Hong Kong and 6% to Europe and elsewhere.
Sources close to the deal say the final order-book reached almost S$6 billion, more than three times oversubscribed. Alexi Chan, head of debt capital markets origination, Asia, at HSBC, says: “This is truly a ground-breaking Singapore dollar perpetual issuance, reflecting strong investor confidence in Genting Singapore’s credit, and showcasing the depth, sophistication and importance of the Asian local-currency bond markets.”
Tan Hee Teck, president and chief operating officer of Genting Singapore, adds: “This is our first perpetual bond issue, and we are very pleased with the market response. Our investors have given us unequivocal support and, of course, it’s a thumbs-up for our bankers.”
CIMB Bank, DBS, Deutsche Bank and JPMorgan were the other joint global coordinators. Genting’s shares surged to a 17-month high recently as the market welcomed the Nasdaq listing of its part-owned Norwegian Cruise Line Holdings.
According to a preliminary review of deal activity for last year by Thomson Reuters, primary bond offerings by Singapore-domiciled issuers reached a record volume of $3.1 billion.
