Swissco completes offeringCompany News // October 14, 2014
SGX Mainboard-listed Swissco Holdings Limited has issued S$100 million in principal amount of 5.7% fixed rate notes due 2018.
The transaction was successfully priced following an intraday book building exercise on 9 October 2014, with an oversubscription rate of nearly ten times.
The notes will mature on 16 April 2018 and will bear a fixed interest rate of 5.7% per annum, payable semi-annually in arrears.
The coupon rate was well within the initial expected rate, reflecting the quality of the orderbook. The notes were issued under the S$300 million Multicurrency Medium Term Note Programme established on 24 September 2014.
The net proceeds from the issue of the notes (after deducting issue expenses) will be used for general corporate purposes of the company and its subsidiaries, and as further specified in the information memorandum dated 24 September 2014 issued in connection with the MTN Programme.
"We are pleased that strong investor demand has enabled us to complete this bond offering," said Swissco's CEO, Alex Yeo. "This offering not only allows us to take advantage of the lower interest rates available in the credit markets, but also significantly strengthens our liquidity and balance sheet.
"At the same time, it improves our financial flexibility to capitalise on potential opportunities. The result is a success for both our bondholders and shareholders."
The notes are expected to be issued on 16 October 2014.