ST INDEX FUTURES SIMSCI SIMSCI FUTURES/media/MAS_Newsletter/SIFC24062013... · By SIOW LI SEN...
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By SIOW LI SEN [SINGAPORE] Banks here handled deals worth over two billion yuan (S$411 mil- lion) yesterday as they rushed to mark the start of the first RMB clearing facili- ty outside greater China. Two offshore yuan bonds totalling 1.5 billion yuan were sold and other trades worth around half-a-billion yuan took place as banks geared up to increase their share of the RMB market before the full liberalisation slated for 2015. The competition led to some chest-thumping, with HSBC and Standard Char- tered both vying to claim pole position on the first yuan bond issue cleared in Singapore. Both banks claimed the prize for themselves. Standard Chartered said it sold a three-year one bil- lion yuan issuance through a Singapore-listed offshore RMB bond. The three-year senior unsecured issuance was priced with a coupon of 2.625 per cent after get- ting over 3 billion yuan or- ders from 75 investors across Asia. “With settlement of the bond set for May 31, this will be the first offshore yuan bond that is listed, cleared and settled in Singa- pore,” it said. Lenny Feder, Standard Chartered Bank group head of financial markets, said that in the wake of one billion yuan deal, “we antic- ipate increased interest in similar transactions from Asian companies, given the greater ease of access to and familiarity with a Singa- pore-based clearing and set- tlement system.” HSBC issued 500 million yuan worth of two-year fixed rate notes paying 2.25 per cent and completed more than 180 million yuan worth of trade settle- ments. “This issuance marks the first RMB bond in Asean and coincides with the historical start of yuan clearing by ICBC in Singa- pore,” said HSBC. It follows on the HSBC group’s issuance in London of the first international RMB bond outside Chinese sovereign territories last year. The RMB bonds were sold to a wide range of Asian and European inves- tors, comprising fund man- agers, insurance compa- nies, private banks and oth- er banks, said Kaitlyn Yang, HSBC spokeswoman. On the trade settlement deals, the transactions via the new yuan clearing facili- ty were for a number of commodities customers such as R1 International Pte Ltd, Singapore Cogen- eration (Steel) Pte Ltd and Julong Group, added Ms Yang. Matthew Cannon, head of global markets at HSBC Singapore said the funds from the yuan bonds will be used to finance the bank’s expansion of RMB-based lending assets. “This issuance will help open the market to other is- suers looking to fund them- selves internationally in RMB, offer new investment opportunities to the sub- stantial pool of wealth man- aged in Singapore and as- sist in funding the rapidly growing RMB denominated trade business in Asia.” Guy Harvey-Samuel, HSBC Singapore chief exec- utive said yesterday’s RMB transactions through the new yuan-clearing facility are part of “the bid to grow the range of RMB services to support the needs of our customers for yuan-denomi- nated solutions and help boost Singapore’s develop- ment as a regional RMB clearing centre”. ICBC Singapore yester- day became the first Chi- nese bank to offer yuan clearing services outside greater China. Until now, the Bank of China has been clearing offshore yuan in Hong Kong, Macao and Tai- wan. Deutsche Bank yester- day said it handled several yuan trade deals amount- ing to the equivalent of US$50 million for clients. Beng-Hong Lee, Deut- sche Bank head of product management for offshore renminbi, expects the yuan business to grow rapidly due to Singapore’s position as the region’s commodi- ties and trading hub. Singapore is also a di- verse financial centre, home to the treasury cen- tres of many multination- als, said Mr Lee. What’s exciting besides the bond issuances and cor- porate use for trade invoic- ing will be investor demand for access into China’s as- set markets, he said. “It’s creating exciting op- portunities for money/fund man- agers. Singapore has a global pool of liquidity and a lot of fund man- agers are looking to get more ac- tively involved in RMB assets,” he said. Deutsche Bank esti- mates that foreign owner- ship of RMB fixed income to grow to 4-5 per cent by 2015 from 1.5 per cent now. The German bank ex- pects the foreign institution- al investment scheme un- der which foreigner inves- tors buy Chinese stocks and bonds to reach 900 billion yuan in 2015 from 300 bil- lion yuan. DBS Bank said it cleared offshore RMB trade transac- tions worth around 280 mil- lion yuan through ICBC Sin- gapore yesterday for institu- tional clients and corporate clients in the commodities industry. “We also completed a re- mittance via ICBC Singa- pore to Hong Kong. There is considerable interest among our customers to set- tle their RMB trades in Sin- gapore, and we have been fielding client queries on this,” said Lum Yin Fong, DBS global head of product management. OCBC Bank said it com- pleted its first RMB transac- tion through ICBC with more to come later this week. The Singapore Ex- change (SGX) yesterday launched its depository ser- vices for RMB bonds, with StanChart’s RMB bond as the first client. SGX is also the world’s first exchange to offer the clearing of over-the-coun- ter foreign exchange for- wards for RMB, it said in a statement. It added that SGX’s Chi- na A50 index futures pro- vides the only offshore ac- cess to the China A-share market. In the last year, the volume and open interest of the A50 futures have tri- pled with an average daily turnover of US$1.5 billion. erests. The Reit will also ar a debt facility of about 00 million. The proposed special vidend will use about 91 million of the pro- eds, leaving about $757 llion that will be used for rking capital and to pur- e “growth strategies ross its property, media d other businesses”, SPH d. Shares of SPH closed at .39 yesterday, up by 0.5 r cent or two cents, be- e the announcement. SPH has received eligibi- y to list approval from Sin- in The Clementi Mall, val- ued at $570 million. SPH will inject the assets into the Reit for around $3.1 billion in considera- tion, comprising gross pro- SPH is also developing a third mall in Seletar, and plans to eventually inject that asset into the Reit when it is completed, SPH chief executive Alan Chan lease capital from the retail properties. “These transactions will strengthen the group’s bal- ance sheet through re- duced gearing and higher and substantial debt head- room, the group will be in a stronger position to pursue our growth strategies across all our businesses.” Assuming that the asset have increased to $2.27 from the original $1.39. Net gearing would have de- creased to 9.3 per cent from 40.6 per cent. On a pro forma basis, the Reit tions that such a move would happen sooner rath- er than later picked up steam in March when SPH reiterated its plans to hive off assets into a listed trust. Yuan clearing off to a fast start in Singapore ARKETS Monday Change OMP 1,767.13 -5.93 EI 225 14,142.65 -469.80 G SENG 22,686.05 +67.38 NDEX 1,593.10 -14.36 RTA COMP 5,085.14 -69.96 ILA COMP 7,097.51 -171.40 UL COMP 1,979.97 +6.52 NZHEN B 863.14 +0.98 MBAI IND 20,030.77 +326.44 12noon EDT Change Closed – DAQ Closed – SGX says it is the world’s first exchange to offer the clearing of over-the-counter foreign exchange forwards for RMB. IME RATES APORE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.38 AYSIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.55 G KONG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.00 ONESIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.034 WAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.036 N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.475 EA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.33 AIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.25 ADA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.00 ZERLAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50 A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.45 ce: Bloomberg
Transcript of ST INDEX FUTURES SIMSCI SIMSCI FUTURES/media/MAS_Newsletter/SIFC24062013... · By SIOW LI SEN...
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By SIOW LI SEN
[SINGAPORE] Banks herehandled deals worth overtwo billion yuan (S$411 mil-lion) yesterday as theyrushed to mark the start ofthe first RMB clearing facili-ty outside greater China.
Two offshore yuanbonds totalling 1.5 billionyuan were sold and othertrades worth aroundhalf-a-billion yuan tookplace as banks geared up toincrease their share of theRMB market before the fullliberalisation slated for2015.
The competition led tosome chest-thumping, withHSBC and Standard Char-tered both vying to claimpole position on the firstyuan bond issue cleared inSingapore.
Both banks claimed theprize for themselves.
Standard Chartered saidit sold a three-year one bil-lion yuan issuance througha Singapore-listed offshoreRMB bond. The three-yearsenior unsecured issuancewas priced with a couponof 2.625 per cent after get-ting over 3 billion yuan or-ders from 75 investorsacross Asia.
“With settlement of thebond set for May 31, thiswill be the first offshore
yuan bond that is listed,cleared and settled in Singa-pore,” it said.
Lenny Feder, StandardChartered Bank grouphead of financial markets,said that in the wake of onebillion yuan deal, “we antic-ipate increased interest insimilar transactions fromAsian companies, given thegreater ease of access toand familiarity with a Singa-pore-based clearing and set-tlement system.”
HSBC issued 500 millionyuan worth of two-yearfixed rate notes paying 2.25per cent and completedmore than 180 millionyuan worth of trade settle-ments.
“This issuance marksthe first RMB bond inAsean and coincides withthe historical start of yuanclearing by ICBC in Singa-pore,” said HSBC.
It follows on the HSBCgroup’s issuance in Londonof the first internationalRMB bond outside Chinesesovereign territories lastyear.
The RMB bonds weresold to a wide range ofAsian and European inves-tors, comprising fund man-agers, insurance compa-nies, private banks and oth-er banks, said KaitlynYang, HSBC spokeswoman.
On the trade settlementdeals, the transactions viathe new yuan clearing facili-ty were for a number ofcommodities customerssuch as R1 InternationalPte Ltd, Singapore Cogen-eration (Steel) Pte Ltd andJulong Group, added MsYang.
Matthew Cannon, headof global markets at HSBCSingapore said the fundsfrom the yuan bonds will beused to finance the bank’s
expansion of RMB-basedlending assets.
“This issuance will helpopen the market to other is-suers looking to fund them-selves internationally inRMB, offer new investmentopportunities to the sub-stantial pool of wealth man-aged in Singapore and as-sist in funding the rapidlygrowing RMB denominatedtrade business in Asia.”
Guy Harvey-Samuel,HSBC Singapore chief exec-
utive said yesterday’s RMBtransactions through thenew yuan-clearing facilityare part of “the bid to growthe range of RMB servicesto support the needs of ourcustomers for yuan-denomi-nated solutions and helpboost Singapore’s develop-ment as a regional RMBclearing centre”.
ICBC Singapore yester-day became the first Chi-nese bank to offer yuanclearing services outside
greater China. Until now,the Bank of China has beenclearing offshore yuan inHong Kong, Macao and Tai-wan.
Deutsche Bank yester-day said it handled severalyuan trade deals amount-ing to the equivalent ofUS$50 million for clients.
Beng-Hong Lee, Deut-sche Bank head of productmanagement for offshorerenminbi, expects the yuanbusiness to grow rapidly
due to Singapore’s positionas the region’s commodi-ties and trading hub.
Singapore is also a di-verse financial centre,home to the treasury cen-tres of many multination-als, said Mr Lee.
What’s exciting besidesthe bond issuances and cor-porate use for trade invoic-ing will be investor demandfor access into China’s as-set markets, he said.
“It’s creating exciting op-portunities formoney/fund man-agers. Singaporehas a global poolof liquidity and alot of fund man-agers are lookingto get more ac-tively involved inRMB assets,” hesaid.
Deutsche Bank esti-mates that foreign owner-ship of RMB fixed incometo grow to 4-5 per cent by2015 from 1.5 per centnow.
The German bank ex-pects the foreign institution-al investment scheme un-der which foreigner inves-tors buy Chinese stocks andbonds to reach 900 billionyuan in 2015 from 300 bil-lion yuan.
DBS Bank said it cleared
offshore RMB trade transac-tions worth around 280 mil-lion yuan through ICBC Sin-gapore yesterday for institu-tional clients and corporateclients in the commoditiesindustry.
“We also completed a re-mittance via ICBC Singa-pore to Hong Kong. Thereis considerable interestamong our customers to set-tle their RMB trades in Sin-gapore, and we have beenfielding client queries onthis,” said Lum Yin Fong,DBS global head of productmanagement.
OCBC Bank said it com-pleted its first RMB transac-tion through ICBC withmore to come later thisweek.
The Singapore Ex-change (SGX) yesterdaylaunched its depository ser-vices for RMB bonds, withStanChart’s RMB bond asthe first client.
SGX is also the world’sfirst exchange to offer theclearing of over-the-coun-ter foreign exchange for-wards for RMB, it said in astatement.
It added that SGX’s Chi-na A50 index futures pro-vides the only offshore ac-cess to the China A-sharemarket. In the last year, thevolume and open interestof the A50 futures have tri-pled with an average dailyturnover of US$1.5 billion.
By KENNETH LIM[SINGAPORE] SingaporePress Holdings (SPH) plansto list its retail properties inJuly to raise an estimated$1 billion in net proceedsand return 18 cents pershare in a special dividendto shareholders, the mediaand property group an-nounced yesterday.
SPH, which owns TheBusiness Times, is target-ing a $540 million initialpublic offering (IPO), includ-ing over-allotments of areal estate investment trust(Reit) holding the Paragonand The Clementi Mallshopping centres.
Industry publication IFRreported that Credit Suisse,DBS Bank and OCBC Bankare the bookrunners for thelisting.
SPH plans to retain astake of about 70 per centin the Reit, valuing the ini-
tial market capitalisation ofthe Reit at $2.2 billion.
The sale of those mallsto the Reit will raise net pro-ceeds of about $1 billion forSPH, after taking out trans-action costs and the dis-charge of encumbrancesand payments to minorityinterests. The Reit will alsobear a debt facility of about$900 million.
The proposed specialdividend will use about$291 million of the pro-ceeds, leaving about $757million that will be used forworking capital and to pur-sue “growth strategiesacross its property, mediaand other businesses”, SPHsaid.
Shares of SPH closed at$4.39 yesterday, up by 0.5per cent or two cents, be-fore the announcement.
SPH has received eligibi-lity to list approval from Sin-
gapore Exchange, and willseek shareholder approvalat a June 18 meeting.
The initial assets in theReit will be a 99-year-lease-hold interest in the freeholdParagon mall, valued at$2.5 billion; and a residual96-year-leasehold interestin The Clementi Mall, val-ued at $570 million.
SPH will inject the assetsinto the Reit for around$3.1 billion in considera-tion, comprising gross pro-
ceeds of about $1.4 billioncash and about 1.9 billionReit units.
SPH is also developing athird mall in Seletar, andplans to eventually injectthat asset into the Reitwhen it is completed, SPHchief executive Alan Chan
said at a media briefing.Mr Chan cast the move
as a way to unlock and re-lease capital from the retailproperties.
“These transactions willstrengthen the group’s bal-ance sheet through re-duced gearing and higher
net asset value per share,”he said. “Backed by a morerobust capital structureand substantial debt head-room, the group will be in astronger position to pursueour growth strategiesacross all our businesses.”
Assuming that the asset
transfers had been complet-ed on Aug 31, 2012, net as-set value per share wouldhave increased to $2.27from the original $1.39.Net gearing would have de-creased to 9.3 per centfrom 40.6 per cent. On apro forma basis, the Reit
would have had distributa-ble income of $115.9 mil-lion for the year ended Aug31, 2012.
Besides continuing to re-ceive a share of the distribu-tions from the assets, SPHwill also collect a fee asmanager of the Reit. Detailsof the fee structure werenot disclosed.
SPH had said as early asNovember 2012 that it waslooking into spinning off itsretail properties. Expecta-tions that such a movewould happen sooner rath-er than later picked upsteam in March when SPHreiterated its plans to hiveoff assets into a listed trust.
Media briefing:Mr Chan (centre),Ginney Lim, SPHexecutive vice-president, corporatecommunications &CSR, and groupcompany secretary;and Tony Mallek,SPH chief financialofficer, at the pressconference.
PHOTO: NEO XIAOBIN/ THE
STRAITS TIMES
Yuan clearing off to a fast start in Singapore
18 cts-a-share payout proposed; SPH to get $1.4bcash and 1.9b Reit units for Paragon, Clementi Mall
FOREXUS$ S$
US$ (S$ per US$) – 1.261
£ (US$/S$ per £) 1.514 1.909
EURO (US$/S$/€ ) 1.294 1.631
Foreign currency per US$ S$
YEN 101.00 80.10
RM 3.028 2.401
HK$ 7.763 6.157
BAHT 29.87 23.69
RUPIAH 9,798 7,771
RENMINBI 6.122 4.856
INDIAN RUPEE 55.60 44.10
A$ 1.036 0.822
NZ$ 1.234 0.979
MARKETSMonday Change
KL COMP 1,767.13 -5.93NIKKEI 225 14,142.65 -469.80HANG SENG 22,686.05 +67.38SET INDEX 1,593.10 -14.36JAKARTA COMP 5,085.14 -69.96MANILA COMP 7,097.51 -171.40SEOUL COMP 1,979.97 +6.52SHENZHEN B 863.14 +0.98MUMBAI IND 20,030.77 +326.44 12noon EDT ChangeDOW Closed –NASDAQ Closed –
SPH plans tolist retailReit in July
SGX says it is the world’s firstexchange to offer the clearing ofover-the-counter foreign exchangeforwards for RMB.
PROPERTYHouse of Tan Yeok Nee back on the marketPAGE 38
COMPANIESOrchard Hotel Shopping Arcade gets $25m revampPAGE 8
SME IncWinTech: Finding its niche in nanotechnologyPAGE 14
H ST INDEX3,391.30 (-1.87)
H ST INDEX FUTURES3,391.00 (-2.00)
H SIMSCI381.07 (-0.26)
G SIMSCI FUTURES381.30 (+2.10)
PRIME RATESSINGAPORE ................................... 5.38MALAYSIA .................................... 6.55HONG KONG ................................ 5.00INDONESIA ............................... 13.034TAIWAN ...................................... 5.036JAPAN ........................................ 1.475KOREA ........................................... 9.33BRITAIN ......................................... 0.50US .................................................. 3.25CANADA ....................................... 3.00SWITZERLAND .............................. 0.50INDIA ........................................... 14.45Source: Bloomberg
MARKETS DIGEST
THE BUSINESS TIMESS$1.00 online at http://www.businesstimes.com.sg CO REGN NO 198402868E MICA (P) 074/08/2012 Tuesday, May 28, 2013
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