Bonds

[memphisb]

I saw these announcement but there is any mentions of minimum purchase size. I suppose its not available to retail?

EZION HOLDINGS LIMITED ISSUES S$110,000,000 4.70 PER CENT. NOTES DUE 2019
UNDER ITS S$500,000,000 MULTICURRENCY DEBT ISSUANCE PROGRAMME
Ezion Holdings Limited (the “Issuer”) is pleased to announce that it has issued S$110,000,000
4.70 per cent. notes due 2019 (the “Series 003 Notes”) under its S$500,000,000 multicurrency
debt issuance programme (the “Programme”). The Programme was established on 9 May 2012.
DBS Bank Ltd. acted as the sole lead manager and bookrunner in relation to the issue of the
Series 003 Notes.
The Series 003 Notes will bear interest at 4.70 per cent. per annum and will mature on 22 May
2019.
The net proceeds of the Series 003 Notes will be used by the Issuer for general corporate
purposes, including the financing of investments in offshore and marine assets and general
working capital of the Issuer or its subsidiaries.
Approval in-principle has been obtained for the listing and quotation of the Series 003 Notes on
the Singapore Exchange Securities Trading Limited (“SGX-ST”). The SGX-ST assumes no
responsibility for the correctness of any of the statements made or opinions expressed or
reports contained herein. Approval in-principle for the listing and quotation of the Series 003
Notes on the SGX-ST is not to be taken as an indication of the merits of the Issuer, the
Programme or the Series 003 Notes. The Series 003 Notes are expected to be listed on the
SGX-ST on 23 May 2013.
By Order of the Board
Lim Ka Bee
Company Secretary
22 May 2013

[arthur]

Normally $250k per tranche.
But depends on the subscription demand. If too hot, bankers wun entertain those 1 or 2 lots. Or only allocate to their top fav clients, ie most AUM kind.

My 1 cent advise. You may start off by analysing whether it has sufficient asset and cash flow to repay its debtors in any default event.

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Senior/ subordinated; secure/unsecured : these words are important too.
Bill Gross, the bond king mentioned the era of bonds has ended last month.

Up to anyone to believe

[john-chin]

If you really want to buy bonds, alternatively, you could purchase Singapore Govt Bonds. Very safe, but very low yield. They recently re-opened 7yr bonds: http://www.sgs.gov.sg/en/News/Bond-Annou...13_7y.aspx

Take note that it is not necessarily the best investment. The latest 5 year bond auction got a coupon rate of 0.5%, which is less yield (not to mention less liquid) than fixed deposit! http://www.sgs.gov.sg/en/News/Bond-Annou...3100T.aspx

But while I am here: Can anyone explain how yield and price for reopened bonds work? For example, the 30 year reopen bond auction here: http://www.sgs.gov.sg/en/News/Bond-Annou...3_30y.aspx

The original Coupon Rate was 2.750% p.a.

The results are here: http://www.sgs.gov.sg/en/News/Bond-Annou...2100N.aspx

To summarize:
Cut-off Yield & Price: 2.76% p.a. and 100.941%
Median Yield & Price: 2.70% p.a. and 102.143%
Average Yield & Price: 2.57% p.a. and 104.811%

The yield and price do not appear to match standard bond calculations. Normally: Yield = (Coupon_Rate * Original_Price) / New_Price

So assuming the cutoff New_Price is 100.941% of the old price, the Yield should be LOWER than 2.75% (to be exact ~2.724%), rather than higher 2.76% as shown...

[AlphaQuant]

So assuming the cutoff New_Price is 100.941% of the old price, the Yield should be LOWER than 2.75% (to be exact ~2.724%), rather than higher 2.76% as shown...

i think u are missing the short stub from the last coupon payment to the actual maturity of the bond when the principal is repaid (i.e. in this case the coupon is paid in Mar+Sep, but the maturity is in Apr)

also the YTM calculation is a bit more complicated than the above simplified formula but in this case i think the former point matters more.