Former Deutsche markets executives launch primary debt platform in Singapore
Covalent Capital’s OMAS platform seeks to digitize primary bond issues; the MAS is a backer.
Covalent Capital held at the end of November a launch event for OMAS, a bond issuance product that seeks to be a one-stop shop for the lifecycle of any new bond deal.
The platform, which has the backing of the Monetary Authority of Singapore (MAS) through its financial sector development fund sandbox initiative, centralizes and disseminates information on a new issue from mandate to roadshows, pricing and allocation.
“Unlike secondary, where you have clearly defined parameters, when you start with a primary process, very few things are defined,” says Sanjay Garodia, founder and CEO of Covalent Capital.
“Every time you change price guidance from 100 to 85, it’s literally like a new deal, and the whole cycle, with all of its multiple stakeholders from DCM to syndicate to sales to the investor side, has to start again,” he says.
“The challenge I find in primary is that because there is no centralized real-time information dissemination, you need an army of people just to convey each change.