Shares & Derivatives
Genting Singapore Issues 5.125% Perpetual Bonds to Retail Investors: Should you go for it?
By Investment Moats  •  April 11, 2012
Genting Singapore, who just had issue the same 5.125% coupon perpetual bonds to investors in large tranches are now making another 500mil available to retail investors in smaller tranches.
  • You will have to subscribe a minimum of $5000, after which you can apply at an increment of $1000
  • You can apply this by going to the ATM just like how you would apply for an IPO
  • This bond will go on forever, but it is callable after 10 years on Oct 2022.
  • If it is not call back, after which the interest will become 6.125%
  • Perpetual bonds have no redemption date, which means you are likely never going to see your capital again
  • This security will be traded on the SGX exchange in sizes of 1000
Important Dates to take note of
  • Coupon will be paid every April 18 and October 18 of the year
  • Opening date of ...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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2 Comments

2 responses to “Genting Singapore Issues 5.125% Perpetual Bonds to Retail Investors: Should you go for it?”

  1. ang chee yang says:

    the statement, “perpetual bonds have no redemption date, which means you are likely never going to see your capital again”, is not exactly correct. as the bonds are traded on sgx, the bond holders can always sell the bonds and get back their capital plus strong potential capital gains. no 10-year deposit rates are quoted in http://singaporesearchsite.com/singapore-tips/fixed-deposit-interest-rate/. interest rates of up to 3 years are way below 1%p.a. given that the bonds pay 5.125% p.a. semiannually, there is therefore a strong likelihood that the bond price will trade above par. hence, applicants can expect a capital gain as well when they decided to sell the bonds.

  2. Edward Koh says:

    with the 5.125% returns on perpetual bonds, is your principal sum guaranteed? Because when you say you’ll never see your capital again..that’s pretty scary and a big turn off. In this case, I rather let my money sit in a fix deposit account and although their deposit rates (http://www.dbs.com/sg/personal/deposit/default.aspx) are not 5.125, at least i’ll still see my money.

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