Singtel prices US$750 million 10-year notes amid strong demand

Singtel store in Raffles City Mall in Singapore; taken August 2018.Singtel store in Raffles City Mall in Singapore; taken August 2018.

Singtel’s wholly owned subsidiary Singtel Group Treasury (SGT) has priced US$750 million of 10-year U.S. dollar-denominated notes at 2.375 percent amid strong demand, the telco said in a filing to SGX Wednesday.

The order book closed after the notes received interest of around US$2.7 billion and was 3.6 times oversubscribed, with a wide range of “high quality investors,” Singtel said.

“We are pleased with the very strong demand for our notes which underscores investors’ continued confidence in the Singtel Group’s high credit quality. We thank investors for their support,” Lim Cheng Cheng, Singtel’s chief financial officer, said in the statement.

The notes, which will mature in 2029, will be issued under SGT’s S$10 billion euro medium term note program, and will be guaranteed by Singtel, the filing said.

Moody’s Investors Service rated the notes at A1, while S&P Global Ratings rated them at A-plus, Singtel said.

An A1 rating indicates obligations are considered “upper-medium grade” and subject to low credit risk, with the issuer having a superior ability to repay, according to Moody’s ratings scale.

On S&P’s ratings system, the ‘A’ indicates an obligations is somewhat more susceptible to changes in circumstances and economic conditions, but the ability to meet the commitment is still strong; the plus indicates the relative standing in the category.

Citigroup Global Markets Singapore, HSBC and Standard Chartered Bank (Singapore) acted as joint lead managers and bookrunners, the filing said.

While you’re here, we’re hoping you can help us out.

Shenton Wire has been providing you with quick news and market analysis. But we need your support to continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.

Your monthly contribution will directly fund our journalism.

S$2     S$4       S$8

S$18       S$28       S$88