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I am vested in Hyflux Preference Shares.
Today Hyflux PS's closed at their highest level since listing, at S$ 106.36. Since listing at end April the PS's steadily rose up to 106.0 and have unexcitingly stayed above that level since. On top of the 6% p.a. coupon, this isn't too shabby a return for "mature codgers" like me - in the directionless market we seem to be in at the moment, I'm not complaining. I can't help feeling that yesterdays remarks by the US Fed Chief and similar recent utterings by other influential types imply lowish interest rates for a tad longer than many thought ........... and for Singapore PS's in general this is good news.
I am wondering if other non-financial listed companies will henceforth look more seriously at PS's when considering re-financing - it enables them to lock in their interest rates (if they are concerned about the impact of rising interest rates what better time to lock in a coupon than now?), for those with a good track record I would wager they could secure a coupon less than Hyflux's 6% p.a. ...... and we now have the "Hyflux precedent", which seems to have gone well for the mother corporation. Prior to this, PS's in Singapore seemed to be the domain of Banks.
On a somewhat related note .......... personally speaking I don't like the kind of financing we have seen e.g. Q&M Dental take out recently with IFC. Part of the loan package allowed IFC to convert to Q&M shares at a heavily discounted share price. Wanted to get that one off my chest.
Today Hyflux PS's closed at their highest level since listing, at S$ 106.36. Since listing at end April the PS's steadily rose up to 106.0 and have unexcitingly stayed above that level since. On top of the 6% p.a. coupon, this isn't too shabby a return for "mature codgers" like me - in the directionless market we seem to be in at the moment, I'm not complaining. I can't help feeling that yesterdays remarks by the US Fed Chief and similar recent utterings by other influential types imply lowish interest rates for a tad longer than many thought ........... and for Singapore PS's in general this is good news.
I am wondering if other non-financial listed companies will henceforth look more seriously at PS's when considering re-financing - it enables them to lock in their interest rates (if they are concerned about the impact of rising interest rates what better time to lock in a coupon than now?), for those with a good track record I would wager they could secure a coupon less than Hyflux's 6% p.a. ...... and we now have the "Hyflux precedent", which seems to have gone well for the mother corporation. Prior to this, PS's in Singapore seemed to be the domain of Banks.
On a somewhat related note .......... personally speaking I don't like the kind of financing we have seen e.g. Q&M Dental take out recently with IFC. Part of the loan package allowed IFC to convert to Q&M shares at a heavily discounted share price. Wanted to get that one off my chest.
RBM, Retired Botanic MatSalleh