GuocoLand 4.4% 5 year Senior Unsecured SGD

Shawn Sng  |   01 Aug 2023  |    139 views

GuocoLand Limited recently announced the issuance of its 5-year senior unsecured bonds with a final price guidance of 4.4%. These bonds carry a tenor of 5 years which will mature on 27th July 2028 with semi-annual coupon payments which are scheduled on 27 January and 27 July each year. The first coupon payment will be paid on 27 January 2024 and these notes are unrated.

 

The notes are being issued under GuocoLand’s S$3 billion Multicurrency Medium Term Note Programme, and the proceeds will be used to finance general working capital and corporate requirements of the group.

 

Company Overview

GuocoLand Limited (“GuocoLand”) is a public company listed on the Singapore Exchange (SGX) under the ticker F17. The company is headquartered in Singapore and its principal business activities are property development, property investment, property management, and hotel operations. GuocoLand also has operations in different geographical markets, including Singapore, China, and Malaysia.

 

1H FY2023 Financials

GuocoLand delivered growth in its revenue with it achieving an increase of 46% YoY (from $452.7m in 1H FY22 to $661.6m in 1HFY23). This increase was mainly driven by the strong performance of both the Group’s Property Development (higher progressive recognition of sales from its residential projects in Singapore) and Property Investment businesses (higher rental revenues from Guoco Tower and contribution from Shanghai’s Guoco Changfeng City South Tower, which commenced operations during the period).

 

In terms of its credit position in 1H FY23, GuocoLand reflected its sturdy ability in generating cash flow despite several headwinds such as supply chain issues, labour shortages, and rising costs. It managed to maintain a positive cash flow of $975.1m. In 1H FY23, its cash and cash equivalents stood at $993.5m which will be unable to cover its short-term obligations of $2.85bn. However, with the sales of its residential projects going strong such as 521 of 605 units of it Lentor Modern already being sold, and it’s highly anticipated Lentor Hills Residence consisting of 598 units is expected to launch in the first half of 2023. This will provide the boost in cash flow that the company will require.

 

Additionally, revenues (e.g. positive lease reversion) and occupancy rates from its premium Grade A offices (Guoco Tower – close to 100%, 20 Collyer Quay – 95%) have been growing consistently over the years despite the hybrid working environment being in place. This will further bolster the company’s cash flow-generating ability. In 1H FY 23, the company’s gearing was reduced from 1 time to 0.9 times as total loans and borrowings were reduced by 8% from the previous quarter due to repayment being made during the period. Thus, with all this information in play, it is believed that GuocoLand should be able to meet its obligations.

 

As the initial offering has closed for subscription, investors who are interested in these notes will have to head onto the bond’s secondary market on our POEMS platform to get hold of them. These notes can be transacted in a minimum lot size of SGD$250K.

 

Bond Overview

 

Related Articles

UBS Group 5.75% NC5.5 AT1 SGD

UBS Group recently announced the issuance of its NC5.5 Additional Tier 1 perpetual notes at 5.75%.

Shawn Sng  |   16 Feb 2024

Deutsche Bank Resiliency in FY2023

Deutsche Bank has just recently released their FY2023 results and its resilient capital management may provide investors with confidence

Shawn Sng  |   09 Feb 2024

Phillip Macro Update – Key Points for January FOMC Meeting

The U.S. Federal Open Market Committee (FOMC) concluded its two-day meeting on the 31st of January 2024. The meeting discussed the Fed’s monetary policy stance and economic projection.

Shawn Sng  |   01 Feb 2024

Disclaimers


These commentaries are intended for general circulation. It does not have regard to the specific investment objectives, financial situation and particular needs of any person who may receive this document. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. Investors may wish to seek advice from a financial adviser before investing. In the event that investors choose not to seek advice from a financial adviser, they should consider whether the investment is suitable for them.

The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the "Research") contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.

Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com

?>