Singapore stocks to watch Friday: Sembcorp Industries, Wilmar, OCBC, Citic Envirotech

Singapore CBDSingapore CBD

These are the Singapore stocks likely in focus on Friday 8 June 2018:

Sembcorp Industries

Sembcorp Development India and Ascendas-Singbridge Andhra Investment Holdings, through their wholly owned joint venture company Singapore Amaravati Investment Holdings (SAIH), formalized their tie-up with the state government of Andhra Pradesh (SGOAP) to jointly master develop Amaravati Capital City Start-Up Area in India with Amaravati Development Corp. (ADC), which is an agency of SGOAP, according to an SGX filing from Sembcorp Industries.

SAIH holds 58 percent of Amaravarti Development Partners (ADP), while ADC holds 42 percent, for the joint development of the 684-hectare start-up area, the filing said.

ADP signed a concession and development agreement with SGOAP for the start-up area on Thursday, with a schedule of 12 months for the conditions of precedent to be satisfied, with the possibility of extensions, it said.

Wilmar and OCBC

Wilmar and OCBC signed a deal that pegs the interest rate of the agri-business trader’s existing US$200 million revolving credit facility to its sustainability performance, the two companies said in a filing to SGX before the market open on Friday.

Under the deal, Wilmar will commit to improving sustainability based on pre-set targets on a broad range of environmental, social and governance (ESG) metrics, which will be assessed annually by ESG research and ratings firm Sustainalytics, it said. If the targets are met, the credit facility’s interest rate will be reduced on a tiered basis, it said.

“This is the largest sustainability-linked bilateral loan by a Singapore bank – one that is funded by a single lender and in collaboration with the borrower on achieving sustainability targets,” the statement said.

Citic Envirotech

Citic Envirotech said it secured a project valued at 1 billion yuan for a fully-integrated environmental project in Anyang City, Henan Province, in China.

The build-operate-transfer project involves designing, construction and operation of wastewater treatment plan, a water purification plant, a water recycling plan, a cogeneration plant and a production factory and workers’ dormitory, it said in a filing to SGX after the market close on Thursday.

Citic Envirotech and Fengzhu Textile Technology will take stakes of 90 percent and 10 percent respectively in the project, it said. Textile printing and dyeing is a key industrial pillar in Anyang, the filing noted.

The project will start from the third quarter of this year and will take two years to complete, the filing said, adding it came with a 38-year service concession and a 60 percent minimum offtake by the government through the concession period.

In a separate filing on Thursday after the market close, Citic Envirotech said it created a subsidiary, Novo Environmental River Restoration, in Xiaochang County, Hubei Province in China. The subsidiary will be a joint venture, with Citic Envirotech holding 90 percent and the local county government taking 10 percent in a public-private partnership (PPP) project to invest 229 million yuan in 11 build-operate-transfer wastewater treatment plants for 11 townships, it said.

Novo Environmental’s registered share capital is 79 million yuan, the filing said. The project will begin construction immediately and is expected to be completed by December of this year, it said.

The investment isn’t expected to have a material effect on earnings per share for the current financial year, it said.

Sunpower Group

Sunpower Group said it secured two manufacturing and services contracts valued at an aggregate 95.5 million yuan from Shandong NHU Amino Acid to supply supply all key zirconium equipment for its methionine project, the largest amino acid project globally.

The environmental-protection specialist company said it would begin supplying the equipment in the second half of this year and expected to complete delivery in early 2019. The contract was expected to have a positive impact on the group’s performance this financial year and next, it said in a filing to SGX after the market close on Thursday.

China Everbright Water

China Everbright Water said that its issuance of its first tranche corporate bonds with an aggregate principal of 1 billion yuan in China on 24 July 2017 has received a “AAA” credit rating from Shanghai Brilliance Credit Rating & Investors Service on 1 June 2018. China Everbright Water, as the issuer, also received a “AAA” rating, it said in a filing to SGX after the market close on Thursday.

The first tranche corporate bonds were listed for trading on the Shanghai Stock Exchange, with effect from 7 August 2017, it said.


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