This article was originally published on Tuesday, 5 March 2019 at 22:49 SGT; it has since been updated to add CapitaLand and ESR-REIT.
These are Singapore companies which may be in focus on Wednesday, 6 March 2019:
Moody’s Investors Service cut its outlook for Singtel’s A1 rating to negative from stable, pointing to the Singapore telco’s increased leverage and weaker earnings outlook.
Singapore’s national water agency PUB issued Hyflux’s desalination plant, Tuaspring, a default notice and said on Tuesday it would exercise its right to terminate its water purchase agreement and take over the plant if contractual obligations aren’t met.
That could complicate troubled water infrastructure and power generation company Hyflux’s efforts to restructure.
CapitaLand said on Wednesday that it has received approval-in-principle from SGX-ST to list the 862.26 million shares it will issue to pay for 50 percent of its around S$6.04 billion total consideration to acquire Ascendas and Singbridge.
The remaining 50 percent of the consideration, or around S$3.02 billion, will be paid in cash, CapitaLand said in a filing to SGX on Wednesday before the market open.
China Jinjiang Environment
In the wake of Moody’s Investors Services downgrading China Jinjiang Environment, the waste-to-energy company said on Tuesday it “has noted Moody’s concerns and [is] taking steps to address them, including monitoring the pace of its expansion and strengthening its cash position.”
On Monday, Moody’s downgraded the company’s corporate family rating to “Ba3” from “Ba2,” and it downgraded the senior unsecured rating on China Jinjiang’s US$200 million of 6.0 percent senior notes due 2020 to “B1” from “Ba3;” Moody’s has a negative outlook on both ratings.
Moody’s said the downgrade was due to China Jinjiang facing an outage of some capacity, its strained liquidity and its overseas expansion raising its financial leverage in the near term.
In addition, “Moody’s sees continued uncertainty related to the credit profile of the ultimate parent company, Hangzhou Jinjiang Group,
reflecting the volatile aluminum and raw material prices, tightened environmental regulations, and the stricter lending policies applicable
to the oversupplied industry,” Qingqing Guo, a Moody’s assistant vice president and analyst, said in a statement on Monday.
Raffles Education said on Tuesday it cancelled its proposed rights issue of up to 275.86 million shares at S$0.10 each as its share price fell below the rights offering price.
ESR-REIT said on Tuesday it filed a proof of claim against Hyflux and Hyflux Membrane Manufacturing (S), which is one of the REIT’s top-10 tenants, for consideration during the water infrastructure company’s restructuring process.
Hyflux Membrane accounted for around 3.5 percent of rental income in December, and it has not defaulted on its rental payments for the property at 8 Tuas South Lane, ESR-REIT said in a filing to SGX.
The REIT also noted the property is in an established industrial area located adjacent to Singapore’s future port and maritime hub, which is expected to be the largest container terminal globally.
“As a result, we have been receiving leasing interest and enquiries for space at the property,” it said.
ESR-REIT said on Tuesday it entered into a S$155 million unsecured loan facility agreement with the Singapore branches of ANZ, CTBC Bank and Standard Chartered as lenders and with ANZ as the facility agent.
The proceeds will be used to refinance existing debt, fund further asset acquisitions and improvements, and for general working capital purposes, it said in a filing to SGX after the market close on Tuesday.
Pine Capital Group
Pine Capital Group said on Tuesday that Chong Chee Hoong, currently an independent director, will be tapped for the position of acting independent non-executive chairman of the board, effective 1 March, in the wake of Tan Choon Wee resigning as interim CEO and executive chairman.
“The company intends to appoint a replacement for Mr. Tan on a permanent basis, and has been searching for a suitable candidate for the CEO and executive director role. In the interim, the board will assist with the management of the company,” it said in a filing to SGX after the market close on Tuesday.
In addition, Tomi-Jae Wanlun Tjio was appointed as independent director, effective 1 March, Pine Capital said.
Qinghai Provincial Investment Group
Qinghai Provincial Investment Group said on Tuesday that it missed the 22 February interest payment on its US$300 million 7.25 percent bonds due in 2020 due to “an internal administrative error,” which has resulted in a technical event of default.