SGX prices debut US$250M notes due 2026 after strong demand

SGX signage at the Shenton Way building; taken October 2018.SGX signage at the Shenton Way building.

Singapore Exchange (SGX) has priced its debut US$250 million five-year notes issuance at 1.234 percent, with the offering meeting strong demand at more than nine times over-subscribed, the exchange said in a filing Friday.

The notes are the first issued under SGX’s S$1.5 billion multi-currency debt issuance program established in 2019, the filing said.

“We would like to thank the investment community for their strong support and demand for our notes. Our debut bond issuance, which
attracted robust interest from high quality investors across the region, was more than 9 times oversubscribed,” Ng Yao Loong, chief financial officer of SGX, said in the statement.

“This follows the highly successful convertible bond issuance earlier this year, and reflects investors’ broad-based confidence in the resilience of our multi-asset business model and ability to navigate near-term challenges. Moving forward, we will continue to be financially-disciplined as we invest strategically to strengthen our value proposition to customers,” Ng added.

The issuance confirms a Shenton Wire item about the offering.

The pricing of the bond had been expected at around the five-year U.S. Treasury yield, which was at around 0.84 percent Thursday, plus 70 basis points, adding SGX to the list of recent issuers with offerings pricing a lower-than-expected yields, suggesting strong demand from investors is depressing returns.  UOL’s offering of seven-year notes earlier this week priced at 2.33 percent, below guidance of around 2.5 percent.

The net proceeds are earmarked to finance investments by SGX and its subsidiaries, to refinance existing debt and for general corporate purposes, the filing said.

Moody’s Investors Service assigned an Aa2 long-term local and foreign currency rating to both the senior unsecured component of SGX’s notes program and to the drawdown, with the rating based on SGX’s Aa2 rating, the filing said.

The joint lead managers for the issuance are Citigroup Global Markets Singapore, DBS Bank and Standard Chartered Bank (Singapore), the filing said.