News: HDB issues $500m fixed rate notes

Sep 19, 2019

Rated Aaa by Moody’s Investors Service, the notes are in denominations of $250,000 and come with a coupon of 2.3 percent per annum payable semi-annually in arrear.

The Housing and Development Board (HDB) on Wednesday (18 September) issued $500 million, 15-year fixed rate notes as part of its $32 billion Multicurrency Medium Term Note (MTN) Programme.

Rated Aaa by Moody’s Investors Service, the notes are in denominations of $250,000 and come with a coupon of 2.3 percent per annum payable semi-annually in arrear.

HDB explained that the notes, which are set to mature on 18 September 2034, are “offered by way of placement to investors pursuant to Sections 274 and 275 of the Securities and Futures Act and (where applicable) Regulation 3 of the Securities and Futures (Classes of Investors) Regulations 2018”.

While approval in principle for the notes’ listing on the Singapore Exchange Securities Trading Limited (SGX-ST) has been obtained, their admission to the official list should not be taken as an indication of the merits of HDB, its subsidiaries or the notes, it said.

HDB added that the notes were cleared via The Central Depository, with Oversea-Chinese Banking Corporation as lead manager and bookrunner.

Under the MTN programme, HDB may “from time to time, issue bonds (or notes) to finance its development programmes and working capital requirements as well as to refinance the existing borrowings”.

Set up on 1 February 1960 as a statutory board, HDB houses more than 80 percent of Singapore’s resident population. Over nine in 10 HDB dwellers own the flats they are living in.

Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg

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