More and more companies in Southeast Asia have come to Singapore to issue high-yield bonds, acknowledging that the Singapore bond market is still substantial and getting along healthily.
Data from Thomson Reuters showed that nearly 5 billion SGD (4.02 billion USD) of high-yield deals were done in the first nine months of this year, compared with 4.4 billion SGD in 2012 and 3 billion SGD in 2011.
Many of these deals were for amounts smaller than 100 million USD and many bonds issued by such unrated firms as Rajawali Group and Indofood Agri Resources of Indonesia, and others from Thailand and Malaysia.
The issuers are being attracted by the ability to print bonds at lower coupons than they would get in their home markets. Meanwhile, Singapore has become a consistent source of funds for issuers in the region because Singaporean investors became renowned for embracing perpetual securities and for chasing yields.
Indofood Agri Resources of Indonesia has announced its plans to diversify into the Singapore market via a new 500 million SGD programme. A number of Indian and lower-rated Thai companies are looking at coming to Singapore with bonds.-VNA
Data from Thomson Reuters showed that nearly 5 billion SGD (4.02 billion USD) of high-yield deals were done in the first nine months of this year, compared with 4.4 billion SGD in 2012 and 3 billion SGD in 2011.
Many of these deals were for amounts smaller than 100 million USD and many bonds issued by such unrated firms as Rajawali Group and Indofood Agri Resources of Indonesia, and others from Thailand and Malaysia.
The issuers are being attracted by the ability to print bonds at lower coupons than they would get in their home markets. Meanwhile, Singapore has become a consistent source of funds for issuers in the region because Singaporean investors became renowned for embracing perpetual securities and for chasing yields.
Indofood Agri Resources of Indonesia has announced its plans to diversify into the Singapore market via a new 500 million SGD programme. A number of Indian and lower-rated Thai companies are looking at coming to Singapore with bonds.-VNA
