Serious Hyflux Offer 6% P.A. On Perpetual Securities! Better Than CPF Woh!

[JohnTan]

WATER-TREATMENT firm Hyflux has launched an offer of up to S$300 million of perpetual capital securities (perps) paying out 6 per cent a year.

This rate is subject to reset or step-up from and including May 27, 2020, the company said in a Singapore Exchange filing on Tuesday morning.

It is offering up to S$230 million worth of perps to the public; up to S$20 million to directors, management and employees of Hyflux and its units; and up to S$50 million in placement to institutional and other investors.

If the public and placement tranches are oversubscribed, Hyflux may increase those tranches such that the total offer size grows to a maximum S$500 million, it said.


For these perps, Hyflux said distributions shall be payable semi-annually in arrears on May 27 and Nov 27 of each year, with the first payment of distributions scheduled to be made on Nov 27, 2016.

On or after the May 2020 distribution payment, however, the rate may be reset to the swap offer rate (SOR) on the relevant reset date plus an initial spread of 4.2 per cent per annum plus a step-up margin of 2 per cent per annum, Hyflux added.

http://www.businesstimes.com.sg/com...launches-offer-of-up-to-s300m-perpetuals-at-6

 

[frenchbriefs]

i thought hyflux is in massive debt and they are not getting many contracts for water plants nowadays.poor cashflow and huge debt thats not a good sign.

 

[frenchbriefs]

Their total debt as of Jun had risen again to $ 1.149 bio and their current market cap of SGD 844 mio (vs 981 mio back in July when I last wrote about them) looks a little weak to support such gearing.

Like I mentioned before in my review in July, “I have a strange feeling, the public perception that Hyflux is partially state owned or will be state owned, if need arises.” But still I will not stick my neck out for them.

Indicative prices of Hyflux bonds.

 

[krafty]

when they give high yield means that they are desperate. but being partially state-owned do boost some confidence in investors.

 

[JohnTan]

i thought hyflux is in massive debt and they are not getting many contracts for water plants nowadays.poor cashflow and huge debt thats not a good sign.

The perpertuals are not seen as debt. If Hyflux defaults on the payouts, it doesn't affect their credit rating even though the stock price may take a hit. I think Hyflux is using the money raised from this set of perpetuals to settle redeem the previous set of perpetuals and pay off some debts. Given that the world today needs more fresh water, I am surprised that Hyflux hasn't been doing well in terms of ROI, cashflow and profitability. I thought their expertise in water treatment and management would make them lots of money.

 

[virus]

when they give high yield means that they are desperate. but being partially state-owned do boost some confidence in investors.

If it is too good to b true

 

[syed putra]

Hyflux managed by kampung girl from taiping, was told to abandon her country by her teachers who thought she was too good for her country.

 

[halsey02]

i thought hyflux is in massive debt and they are not getting many contracts for water plants nowadays.poor cashflow and huge debt thats not a good sign.

Issuing whatever is buying time, for you can find gullible financier aka "investor" who will subscribe to them. They can promise you anything in the prospectus, but when the time comes to pay you.....you can bet, they will come up with 1001 excuses to pay you less or none. But in order to hold you down, the first payment is GUARANTEED.. when you pay them the money...you already GAVE....getting it back....another story.

So, read the terms very carefully.....very, very carefully.....it is your money, so be careful.

 

[johnny333]

...So, read the terms very carefully.....very, very carefully.....it is your money, so be careful.

You are probably right. That's the trouble with many of the locally listed companies, a lack of integrity.
Even well known insurance companies can cheat you because of the "laws" or rather because of who is managing the laws in Spore:(

I'd rather own shares of a cash rich company like Apple who promises to increase their dividens than risk trusting a local company.

 

[borom]

Why do you think these S chips scammers literally got away scot free.
How can the govt that let these cheats get away be re-elected again and again.
Look at China Fishery and Pacific Andes and ask yourselves whether this govt is pro business or pro people on the streets?

Just build parks and linkways and these people will swallow it hook and sinker

 

[Brightkid]

?......... I think Hyflux is using the money raised from this set of perpetuals to settle redeem the previous set of perpetuals and pay off some debts........

If is correct, it sounds like a scam, isn't? Money-owed is still a 'debt' hence a liability in the books, whatever is called.

I don't know what is 'perpetual securities' or most other securities instrument, but 6%pa seemed too good to be true. Wonder why CPF do not allow peasants to withdraw and dump it into Hyflux instead of the miserable 2.5%pa, when you can get 6%?

Btw, Oxley Holdings just closed its call for funds? Wonder is it over subscribed.

 

[Unrepented]

I also don't know, this is what I gather, don't know correct or not:o

1."What is a 'Perpetual Bond'

A perpetual bond is a bond with no maturity date. Perpetual bonds are not redeemable but pay a steady stream of interest forever. Some of the only notable perpetual bonds in existence are those that were issued by the British Treasury to pay off smaller issues used to finance the Napoleonic Wars (1814). Some in the U.S. believe it would be more efficient for the government to issue perpetual bonds, which may help it avoid the refinancing costs associated with bond issues that have maturity dates.

A perpetual bond is also known as a 'consol'.


Read more: Perpetual Bond Definition | Investopedia http://www.investopedia.com/terms/p/perpetualbond.asp#ixzz49AaBAEDk
Follow us: Investopedia on Facebook"


2. If Debt, the principal sum has to be repaid in an agreed future date.

3. ROI and future value of money, how long it takes to recover the "today value of your investment", and what is that magic equivalent S$ sum.

4. I think is like buy house to earn rental income only, one of the relevant date: May 27, 2020 rental rate change:o

If is correct, it sounds like a scam, isn't? Money-owed is still a 'debt' hence a liability in the books, whatever is called.

I don't know what is 'perpetual securities' or most other securities instrument, but 6%pa seemed too good to be true. Wonder why CPF do not allow peasants to withdraw and dump it into Hyflux instead of the miserable 2.5%pa, when you can get 6%?

Btw, Oxley Holdings just closed its call for funds? Wonder is it over subscribed.

 

[halsey02]

You are probably right. That's the trouble with many of the locally listed companies, a lack of integrity.
Even well known insurance companies can cheat you because of the "laws" or rather because of who is managing the laws in Spore:(

I'd rather own shares of a cash rich company like Apple who promises to increase their dividens than risk trusting a local company.

This was many years ago, when Jobs just came back to APPLE - AAPL ...... someone I knew was asking me, what do you think, "client is asking, shall he pick up some AAPL & Coca Cola shares"?....I said, Steve is back, should bring the company around, at US$18 a stock then...it was dirt cheap....well, client bought 10 lots of AAPL....if that person had held the shares until recent years before Jobs dies, you less currency fluctuations, less custodian fees, etc....plus stock splits etc.....one really make a HUGE BUNDLE.

I had only enough money back then to buy 1 lot....if I did hold till now....how would I know it be be at this price now?...had a haunch that APPLE will rise...no inkling that it will be that spectacular a rise...


Buying Hyflux whatever...even I have 500,000 I would say no!.....I may become, Hi..F$%$%ked in no time...

 

[johnny333]

..how would I know it be be at this price now?...had a haunch that APPLE will rise...no inkling that it will be that spectacular a rise...


Buying Hyflux whatever...even I have 500,000 I would say no!.....I may become, Hi..F$%$%ked in no time...

Tim Cook has stated that the dividen from Apple will be gradually increased each year. For the past 2 years it has increased by 10% per year.
Apple has over $220 billion in cash & with the buy backs they are doing, they are decreasing the number of outstanding shares out there. So the decrease in outstanding shares will allow them to keep increasing the dividens


Maybe that is why Berkshire recently bought $1 billion of Apple shares. Even Donald Trump owns Apple shares.

 

[lifeafter41]

when they give high yield means that they are desperate. but being partially state-owned do boost some confidence in investors.

I guess with the current low yield environment, FDs, savings acct paying pittance. Retail investors or retired person looking for better yield will most likely subscribe to it......

 

[mmngck]

Hyflux: Launches 6% P.A. Perpetual Capital Securities Retail Offering

good to apply?