Another bond bites the dust.

Don’t worry, this is not from the troubled oil and gas sector. It’s the optional redemption of Capitamalls asia bonds, CapMallA3.8%b220112 announced from sgx here. I blogged about the bonds here and here.

The full maturity of the bond is actually on 12-Jan-2022 but there is an option for early redemption on 12-Jan-2017 and every year thereafter. Since there is a step up option for the bond  if it is not redeemed on 12-Jan-2017 to 4.5% instead of 3.8%, I guess there’s every reason for them to redeem it back in full. The 3 months SIBOR now is 0.87%, about doubled since Jan 2015. I guess I was wrong to think they wouldn’t redeem it. There’s still another bond out there with 3.08% by Capital Mall Trust (not the same, but yeah) with no step up option and with maturity …