Keppel pricing perpetual bond offer: Client note

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Keppel Corp. is pricing a 2.9 percent perpetual bond offering, with an indicative market offer in the 98.80 to 99.00 area, according to a client note seen by Shenton Wire Wednesday. 

The indicative offer is at 97.88, lower than the market offer, the note said.

The call date for the offering is September 2024, while the refix date is set for 2026, the note said. The refix rate is at the SORA five-year rate plus 2.097 percent plus a 1.0 percent step up, the note said.

The yield to the call date is 3.78 percent, the yield to the step up date in 2026 is 3.40 percent and if the bonds aren’t called, the estimated base rate on refix in 2026 is at 4.78 percent, the client note said.

The trade date is expected to be 14 March, with the settlement date at 16 March, the note said.

The minimum investment size is S$250,000, the note said.