Courts Asia: To Issue S$125 Million 4.75% Fixed Rate Notes Due 2016

[revolta]

any idea how can i get this?

Will it come or as IPO and ballot after i apply at atm?

or find banker for the issue of this notes?

[RBM]

any idea how can i get this?

Will it come or as IPO and ballot after i apply at atm?

or find banker for the issue of this notes?

Answer ........
1. Be an accredited investor according to the SGX/MAS rules (ATM applications are not available for this), and
2. Apply via your Private Banking Relationship Manager, and
3. Be prepared to stump up S$ 250,000 minimum (probably a tad more now - I understand that in the OTC market Courts' 4.75% p.a. debt paper is already trading above parity), and
4. If you want to participate in the initial issue be successful in your application (in the current market frenzy for "high" yielding short tenor debt paper, usually applicants submitting the minimum S$ 250,000 application are unsuccessful).

Hope this helps.

Not vested in Courts debt paper.

[safetyfirst]

haha omg, 250k still cant ensure success of application, i guess i can only watch from the sides

[RBM]

haha omg, 250k still cant ensure success of application, i guess i can only watch from the sides

Hello safetyfirst,

For a more extreme example, you may want to review pages 2 thru 4 of the MapleTree Greater China REIT Value Buddies thread. For the placement tranche of this recent issue, a minimum of S$ 3,000,000- (three million singies) was needed even to stand a chance of gaining a paltry allocation.

[pianist]

Why it has to be 250k for accredited investor? It is some requirement or fictitious number?

[Contrarian]

>>> Sophisticated Investors Get 4.75%.

I wonder what rate % they offer in the corporate bond market...

[greypiggi]

Guys, bond unit is 250k for sgd bonds. There are retail bonds which are sold at 1000 or 10000. Usd usually 200k, Gbp 100k or 50k units. Cny 1m. This bond trading at 101+ at bid now. It was very popular bond. By the time I put in order already closed books.

[d.o.g.]

Why it has to be 250k for accredited investor? It is some requirement or fictitious number?

According to the Securities and Futures Act, any offering of securities must be accompanied by a prospectus. There are however a few exceptions under which a prospectus is not required.

One of these exceptions is Section 275(1A)(a) of the Act, where debentures (i.e. bonds and other debt securities) are exempted from a prospectus if they are offered only to investors who deal in at least $200,000 per transaction. There are equivalent sections covering offerings of units in business trusts (Section 282Z) and collective investment schemes (Section 305), and the bar here is also set at $200,000 per transaction.

Thus, in order to avoid the need for a prospectus, virtually all bonds in Singapore are sold in lot sizes of at least $200,000. However, in recent years there were a few bonds that were issued with a prospectus, allowing them to be sold in less than $200k lots e.g. SIA and Capitamall. These were obviously "national service" projects to help the SGX develop a retail bond market.

[pianist]

dear d.o.g., thanks so much for the guidance. u actually dug out "Section 275(1A)(a)" for & educate us at 2am. realli touched by yr relentless selfless effort. pls rest well too..

[KopiKat]

According to the Securities and Futures Act, any offering of securities must be accompanied by a prospectus. There are however a few exceptions under which a prospectus is not required.

One of these exceptions is Section 275(1A)(a) of the Act, where debentures (i.e. bonds and other debt securities) are exempted from a prospectus if they are offered only to investors who deal in at least $200,000 per transaction. There are equivalent sections covering offerings of units in business trusts (Section 282Z) and collective investment schemes (Section 305), and the bar here is also set at $200,000 per transaction.

Thus, in order to avoid the need for a prospectus, virtually all bonds in Singapore are sold in lot sizes of at least $200,000. However, in recent years there were a few bonds that were issued with a prospectus, allowing them to be sold in less than $200k lots e.g. SIA and Capitamall. These were obviously "national service" projects to help the SGX develop a retail bond market.

Interesting... Learnt something new! Thx!

In such offerings, how'd accredited investors go about evaluating it? I was ever asked by a friend to give my comments on one such offering but the only info available was on one single sheet. Looks like useless info to me and my request for more detailed ones didn't turn up anything. Now, I wonder if that was really just it.... I suppose it was being treated as a case of, if you need to ask, it's not suitable for you and the RM happily allowed someone else to be alloted such offerings...