SGX pricing 5-year USD fixed-rate notes: Client note

Signage at the SGX building on Shenton Way in Singapore; taken October 2018.Signage at the SGX building on Shenton Way in Singapore; taken October 2018.

Singapore Exchange (SGX) is pricing five-year U.S. dollar-denominated senior unsecured fixed-rate notes, according to a client note seen by Shenton Wire.

The guidance on pricing is the five-year U.S. Treasury yield plus 70 basis points, the note said. The five-year Treasury yield was at 0.831 percent, according to MarketWatch data. The quantum of the deal wasn’t provided.

The pricing of the deal may be closely watched after UOL’s offering of seven-year notes earlier this week priced at 2.33 percent, below guidance of around 2.5 percent.

SGX plans to use the proceeds to finance investments, to refinance existing debt and for general corporate purposes, the client note said.

The notes will be issued under SGX’s S$1.5 billion multi-currency debt issuance program, the note said.

The joint lead managers of the deal are Citigroup, DBS Bank and Standard Chartered Bank, the note said.

The expected issue rating is at Aa2 from Moody’s Investors Service, in line with SGX’s issuer rating of Aa2 stable from the rating service, the client note said.