Frasers Centrepoint raising S$200m from bond issue - Channel NewsAsia

Frasers Centrepoint raising S$200m from bond issue - Channel NewsAsia

This is one retail bond which is going to be listed... Finally there is one which we can look into.

• IPO price on 17th May 2015 = S$1.00
• Interest = S$0.0365 per share
• Yield = 3.65%

Investment till Callable Date

• Tenure = 7 years
• Total Interest = $0.2555 per share
• Capital Loss = $0.00
• Transaction Cost = $0.006
• Overall Return = $0.2495
• Overall Annual Yield = 3.564%

Fraser Centrepoint is now raising a new 7 year bond with a coupon of 3.65%. On paper, the published yield seems ok but if you look at investment till callable date, you would realize that it is by far even better than Hyflux 6% CPS preference shares because if you get it at IPO and hold it until maturity, you are not going to lose any capital. For Hyflux, you are still going to lose capital because you are buying at a premium.

There is another bond, Genting SP 5.125% Perp bond which has almost the same maturity as FCL (provided they redeem their bonds) and it is currently having an overall annual yield of 4.062%. Another is CapitaMall Trust 3.08% bond yielding at an overall annual yield of 2.707% maturing one year lesser. Thus, there is quite a number to compare. I would say that the yield is going to be closer than CapitaMall Trust than Genting SP as FCL and CapitaMall Trust are both property related (although one is a developer and another is a REIT)

I have applied for 10 lots and hoping to get some. If I am right than the yield is going to be closer to CapitMall Trust 3.08%, price will go up to about $1.04 at listing. If I am wrong and it is closer to Genting SP 5.125% Perp, the price will go down to $0.98. It is really a 50-50 and I think it is going up. If it really went down, I will buy more on the market.

OCBC 360 - from 3.05% to 2.25% Account... Still the best for me

With a change in policy from OCBC this year, they tried to tie in more criteria to sell more products and generate more sales and at the same time, cushion the impact of unhappiness. Well, it looks like an increase but it is actually a decrease.

• Salary Credit increases to 1.2% per annum
• 3 GIRO dropped to 0.5% per annum
• $500 Credit Spend dropped to 0.5% per annum
• 1% more if you buy structured products, unit trusts or selected insurance (Selling more products here)

To me, the last criteria is not really important as they are trying to sell more products here. That leaves me with 2.25% which is still not too bad.

Thus, for every $10,000 savings in the account, we will earn $225 per year with $50 coming from minimum $500 spend per month ($6,000 per year) credit card spend.

Still the best in town, better than fixed deposits. Just glad that I have enjoyed the earlier 3.05%.

Analysis of Hyflux 6% CPS 10

• Current Price on 16th Apr 2015 = S$106.40
• Interest = S$6 per share
• Yield = 5.639%

Investment till Callable Date

• Tenure = 3 years
• Total Interest = $18 per share
• Capital Loss = $6.40
• Transaction Cost = $0.532
• Overall Return = $11.07
• Overall Annual Yield = 3.467%

I recently advised my brother to buy Hyflux 6% CPS 10 just before they distribute their interest. He did and has not regretted since the drop in price is less than the dividend he receives. I am glad that he has made his foray into investment although it is a small step.

With the recent distribution, here are the statistics. With an overall annual yield of 3.467%, it looks decent especially when we are looking at a 3 year bond. Better than OCBC 360 which is going to change its regulation soon and we may not be getting 3.05% anymore.

Thus, this becomes increasing an attractive place to park my cash reserves.

Details on savings bonds for individual investors released - Channel NewsAsia

Details on savings bonds for individual investors released - Channel NewsAsia



With the details of the Singapore Saving Bonds coming up, it is really good for all of us who wish for higher interest rates to be earned from our savings.



However, with the 10 year bonds hovering at 2 - 3%, they still can't beat OCBC 360 account which is paying 3.05%. If I were you and I am still working, I will open the account and faithfully fulfil the three criteria to get the interest.

Analysis of OCC 5.1% NCPS 100

• Current Price on 6th Mar 2015 = S$105.30
• Interest = S$5.10 per share
• Yield = 4.873%
• Credit Rating = BBB+

Investment till Callable Date

• Tenure = 3.5 years
• Total Interest = $17.85 per share
• Capital Loss = $5.30
• Transaction Cost = $0.52
• Overall Return = $12.02
• Overall Annual Yield = 3.262%

OCC 5.1% NCPS 100 is one of those which is giving a higher return than OCBC 360. Moreover, they just paid a coupon which reduces its purchase price. Here are the statistics.

Current yield is at 4.873% which is quite strong (One of the highest) but if you count in capital loss and transaction cost, overall annual yield is 3.262% which is marginally higher than the base of 3.05%. One good thing about this is that it has a credit rating of BBB+ which shows its stability and it is equivalent to most of the REITs

There are better preference shares out there like Hyflux (although there is no credit rating) and Genting (but it is casino-based which I don't like). I will just keep track but I won't enter into this yet.

Updates on my Portfolio

Recently Olam has redeem their bonds which I was one of the holders. I bought it just before they announce that they are redeeming it. Luckily, with the appreciation of US dollar, I manage to break even from this mistake that I have made. With the money back, I am looking at how to park my cash reserve again.

My brother gave me a suggestion which I thought was good and that is to include transaction cost into my analysis. It is a great idea so as to give more clarity on the analysis that I am giving. Moreover, with OCBC 360 Account as a base, it is easier to compare so from now on, my analysis will include transaction cost. :-)

The frequency of posting will be less for this as there are not many counter to follow in the first place so whenever there is something, I will put it up.

Update - Singapore Corporate Bonds and Preference Shares: Analysis of Olam 6.75%b180129 Retail Bond

Singapore Corporate Bonds and Preference Shares: Analysis of Olam 6.75%b180129 Retail Bond



Recently they have decided to redeem the bond which resulted in a drop of its shares to $1.033. I guess I am still not quite informed and not tracking the market as closely as I should. I actually bought it on the day they made this announcement so I am making a loss on this. Hope that it is not too much.