Hyflux Perpetual Securities

This is because perpetual bonds and preference shares are subordinate to senior debt and other bonds. That retail element, is what made this case so big, with stories of retirees placing their life savings into Hyflux securities & losing it all. Also halted: payments on its high-yield perpetual securities. When they were first introduced in 2011, they looked fantastic. Hyflux 6% p. 34,000 investors invested a sum of around $900 million dollars in Hyflux which was raised through two tranches in 2011 and 2016. Thomson Medical Group: Bond Issue on the Horizon? Market sources indicate that Thomson Medical Group may be coming to the market with a new bond in the next few weeks, following the establishment of a S$500m debt program in June. Do Hyflux's 6% Perps Have Sufficient Margin of Safety? Hot on the heels of Aspial, Perennial and Oxley, Hyflux has launched an IPO for its retail 6% perpetual capital securities (perps). 00% Perpetual Capital Securities (SGX:BTWZ) which was scheduled on 28 May 2018 (on account of 27 May 2018 falling on a Sunday) should not be made at this point in time. 7 S cent in 2Q15. Hyflux has completed projects in Singapore, China, Southeast Asia, the Middle East, and Algeria. Details of Offer for Perps and Pref Shareholders To summarise, Hyflux has offered to exchange the $900 million in value for Perpetuals and Preference shareholders into 10. SINGAPORE - Alleged differences within the Hyflux board over advisers' fees, board representation and management oversight were cited by potential white knight Utico as reasons why the restructuring deal has not been signed by the embattled water treatment firm. said its chief executive officer Olivia Lum volunteered to contribute her entire stake of 267 million shares and other securities in the embattled water-treatment company as part of a restructuring plan. How Perpetual Securities affect Ordinary Shareholders Perpetual Securities are a class of financial instrument and has in recent times gained popularity due to a low interest environment. The last they did that was in 2011 and I made a 4 part series on preference shares here. These FAQs address the common concerns and questions that have been raised including by the banks lenders, trade creditors, holders of the perpetual capital securities and preference shares ("P&Ps") and the holders of the Series 008, 009 and 010 notes ("MTNs") on the commercial terms under the scheme of arrangement of Hyflux Ltd ("Hyflux Ltd Scheme"). This means that for every $1,000 invested, a holder of Hyflux's perpetual securities and preference shares will recover just $106. 3% at the end of 2016. For note holders, separate sessions will be organized. How Hyflux lost nearly S$2 billion in value in less than 10 years. 5% only because I have placed perpetual securities under debts instead of equity. SINGAPORE: For every S$1,000 invested, a holder of Hyflux's perpetual securities and preference shares will recover S$106. , Monday, 30 May 2016. 26 per cent share of the reorganised company. Hyflux investors, many of them "unsophisticated" retail investors such as retirees and housewives, stand to lose over 90 percent of their investment in Hyflux perpetual securities. Why-flux? a holder of Hyflux's perpetual securities and preference shares will receive roughly 10 percent of what they. In addition, investors should also note that, as with typical perpetual capital securities, payment of distributions under the Securities may also be deferred for an indefinite period and investors have no recourse to the Issuer if such deferral is made in accordance with the Terms and Conditions. Perpetual Bond: A perpetual bond is a fixed income security with no maturity date. 7 per cent - from $30. 7 S cent in 2Q15. 26 units of Hyflux shares (assuming 19. This is because Hyflux Ltd intends to preserve cash in order to finance the completion of its existing projects and its operations, both locally and abroad in the near future. Premium gain on item b. Singapore—Middle Eastern utility company Utico will buy an 88 percent stake in beleaguered water treatment firm Hyflux, for the amount of S$535 million. I guess everyone by now knows that its is a perpetual bond that has a step up in 4 years time. Similar to the Hyflux preference share, the company does not have the obligation to do a call back. Securities Act. On 30 May 2016, Hyflux raised SGD500 million of perpetual securities with an interest rate of 6%. Given this drawback, the major. On page 42 of Hyflux 6% PCS (BTWZ. 0% It looks like out of all the securities listed on the SGX, I just so happen to go out of my way and spend my time and effort to publicly shit all over 2 companies (Noble and Hyflux), way in advance before they go bust. Unfortunately, Hyflux offered preference shares to retail investors in 2011, and perpetual securities in 2016, both at 6% yields. The bulk of the perpetuals - up to $230 million - will be offered to the public, the group announced yesterday. If you are an investor of Hyflux’s preference shares or perpetual securities, you are encouraged to attend the briefing sessions and/or the Townhall session. This is about $400 Million. If Hyfluxshop turn out to be highly profitable or can be listed now, the benefits should go to creditors and perp holders and not to Olivia Lum. A bond is ranked above a preference share and, in some cases, has the same ranking as creditors; perpetual capital securities may rank lower than creditors, or in line with preference shares. 3% of the reorganised company, according to an. The chart explain why Hyflux had to raise fund from 2011 and having to continue to do so since. Why-flux? a holder of Hyflux’s perpetual securities and preference shares will receive roughly 10 percent of what they. "Punitive" Step-Up interest rate. 15 in cash and $76. This means that for every $1,000 invested, a holder of Hyflux's perpetual securities and preference shares will recover just $106. 54, or an implied return rate of 10. Hyflux Ltd ("HYF") released preliminary restructuring terms. As the recent Hyflux downfall also focus on it's perpetuals bonds, I am looking into YY Inc's preferred shares. Notable projects. 25 per cent. This time it's from Hyflux. If not, the dividends will step up to 8%. 5 million) they plonked down in the troubled Singaporean water and power firm's preference and perpetual shares. And after adjusting for perpetual securities dividend, it would have posted a net loss of 1. Difference 1. The ISIN Code is SG31B4000005. Eight years ago, we discussed Hyflux perpetual bonds here, putting forward the investment thesis that 6% was good dividend/interest income and how Hyflux had a so-so business model but things should be okay because the Singapore government would support Hyflux as they had done so in the past. This time it’s from Hyflux. Hyflux recently announced that they will be issuing preference shares (perpetual securities) again. (3) Adjusted for the effect of CPS of S$400 million. The perpetual securities are not listed as liabilities but as equity even though these perps are actually also loans to the company. Subsequent to the issuance of the perpetual bonds, Hyflux would need an additional SGD 18 million in cash to pay out the coupon payment annually. There was no lack of investors at that time. Subsequent to the issuance of the perpetual bonds, Hyflux would need an additional SGD 18 million in cash to pay out the coupon payment annually. After reading Hyflux's offer document for the perpetual capital securities issue last year, it appears the interest payment to the perpetual security holders is, indeed, mandatory in nature. More than 100 retail investors of Hyflux perpetual securities and preference shareholders - many of whom were elderly, with at least one in a wheelchair - held a protest at Hong Lim Park yesterday. About 34,000 perpetual securities and preference shareholders who invested in Hyflux are owed a total of S$900 million, but only stand to receive a recovery rate of 10. Page 1 of 7 - Hyflux RPCS aka Securities - posted in Lite & EZ: As above. 3% at the end of 2016. Companies such as Ezion, Hyflux and even Mapletree Logistics Trust have issued such instruments to retail investors. However, if we count the perpetual securities as debt, Hyflux's debt-to-EBITDA, debt-to-market cap and debt-to-total capital ratios would jump to dizzying levels at 23. This means that for every $1,000 invested, a holder of Hyflux’s perpetual securities and preference shares will recover just $106. May 2020 payment时payment rate会变成 Four-year swap offer rate (SOR) + Initial spread of 4. 7% to 50 cents, a tranche of perpetual securities the company issued only in May with a coupon of 6% have fallen 6. This morning, I was quite excited to receive news of another retail bond. Hyflux, will be issuing $300 million in perpetual securities with an option to up-size the issue to $500 million in the event of over-subscription. In July 2016, Hyflux repaid SGD175 million of perpetual securities which had a coupon of 4. As perpetual securities should really be a 'loan', the 'more accurate' total equity should be modified to (278,690 - 218,087) = 60,603. Investors holding preference shares come next and finally, holders of common stock - again, if anything is left in the kitty. Hyflux's debt, including bank loans, subordinate loans such as perpetual securities and preference shares, and medium term notes, sums up to nearly 3 billion Singapore dollars ($2. UOB prices $750m 3. Will Hyflux still be the same after this issue? We leave you with the following analysis by Hedge X of The Hedgehog to tell you the story 🙂. In contrast, perpetual securities can afford to miss dividends/distributions without any credit event. It was a situation of "strike while the iron is hot". In this respect, the DBOO deserves a second look in the selection and monitoring of their tenderers, and the government must be held responsible when the eventual outcome falls below expectations. The ISIN Code is SG31B4000005. The Hyflux restructuring plan unveiled For every S$1,000 invested, a holder of Hyflux's perpetual securities and preference shares will recover S$106. Water treatment firm Hyflux has launched an offer for up to $300 million in perpetual capital securities, paying out 6 per cent a year. Hyflux may have been overzealous in its business strategy to derive more stable recurring income by entering into a long term concessionary agreement with an overly optimistic water tariff rates. 39 of implied value in Hyflux shares. Issuers pay coupons on perpetual bonds forever, and they do not have to redeem the principal. There are a total of about 34,000 holders of such securities, according to an external spokeswoman for Hyflux. 7 S cent paid out in 1H15. 7 per cent - from $30. Once the dividend in species wend XD, she suspended the all hyflux securities!. So Utico has gone on a massive PR exercise to put pressure on the Hyflux board via the retail holders of perpetual securities and preference shares. S$175,000,000 4. Utico says that Hyflux's valuation is at S$340 million. e, high-risk bonds). The question is: If hyflux does not call N2H, but continues to pay, what kind of yield will the market require? I do not know, but current yields are juicy enough for me. 7 S cent in 2Q15. 75% raised in January 2014 and the second was $175m perpetual @4. 25 per cent. Singapore's global environmental solutions company, Hyflux has a debt, including bank loans, subordinate loans such as perpetual securities and preference shares, and medium-term notes, of over 3 Bn Singapore dollars ($2. Hyflux Ltd ("HYF") released preliminary restructuring terms. Considering their recent cash from 2020 PS and we truly believe in Hyflux Business model else any of them will be really risky. This article was contributed to us by Endowus. Perpetual Bond: A perpetual bond is a fixed income security with no maturity date. 1) Perpetual securities imo are a red flag. 5% only because I have placed perpetual securities under debts instead of equity. About 34,000 perpetual securities and preference shareholders who invested in Hyflux are owed a total of S$900 million, but only stand to receive a recovery rate of 10. At the time, Hyflux said it was informed by Utico that it planned to offer the cash equivalent of a 4 percent stake in the enlarged Utico group, plus additional cash to the holders of Hyflux's preference shares and perpetual capital securities. Hyflux's market cap stands at $121 million, a steep fall from the 2010 peak of $1. Watch Out for Hyflux's Omission of Ordinary Dividends Hyflux announced its half year financial results last month. Hyflux 6% p. The last they did that was in 2011 and I made a 4 part series on preference shares here. A total of 34,000 retail investors had invested $900 million in these securities. Notable projects. 5% below par to 93. Holders of perpetual securities would be next in line - if there is any cash left. 2 S cent, down from 0. The shares, which had been down 44% for the year, were suspended May 23, affecting more than 50,000 retail and institutional investors. The company had. 39 of implied value in Hyflux shares. 7%, only 3% is paid in cash and the other in shares of Hyflux. Unfortunately, Hyflux offered preference shares to retail investors in 2011, and perpetual securities in 2016, both at 6% yields. Water treatment firm Hyflux has launched an offer for up to $300 million in perpetual capital securities, paying out 6 per cent a year. Singapore's global environmental solutions company, Hyflux has a debt, including bank loans, subordinate loans such as perpetual securities and preference shares, and medium-term notes, of over 3 Bn Singapore dollars ($2. This means that for every $1,000 invested, a holder of Hyflux’s perpetual securities and preference shares will recover just $106. On page 42 of Hyflux 6% PCS (BTWZ. SINGAPORE - Hyflux chief executive Olivia Lum has volunteered to contribute her entire stake of 267 million Hyflux shares and securities as part of a proposed restructuring plan for the troubled. There was no lack of investors at that time. This morning, I was quite excited to receive news of another retail bond. Similar to the Hyflux preference share, the company does not have the obligation to do a call back. The bulk is targeted at retail investors who can subscribe with as little as $2000. Hyflux CEO and Executive Chairman Olivia Lum and the company’s board of directors said on Saturday that if the company’s restructuring plan is approved, they would contribute all of their shares and entitlements as holders of preference shares and perpetual capital securities, or the PNP, to be distributed to other PNP holders. "Punitive" Step-Up interest rate. The short and abbreviated names are 'Hyflux 6% PerCapSec' and 'HYFLUPCS' respectively. these bank can utilize these resources to play with hyflux , the court all day long. In 23 Jan 2014, Hyflux issued perpetual capital securities with a distribution rate of 5. 125% perpetual securities. It seems that in 2010, Hyflux bid for the water contract at a first-year price that was the lowest compared to any desalination plants in Singapore. To complete ongoing projects, it can progressively draw down from some S$400 million worth of project finance loans as it achieves milestones in project construction. There was no lack of investors at that time. That turned out to be a huge mistake. Each board lot of Securities will comprise S$1,000 in principal amount of Securities. This time, this issue seems more like perpetual shares than bonds. Singapore's troubled water treatment company Hyflux Ltd, formerly celebrated as a hallmark of entrepreneurship in better times, is set for a humbling week. About 34,000 perpetual securities and preference shareholders who invested in the water and power company are owed a total of S$900 million, but only stand to receive a recovery rate of 10. To raise capital, Hyflux had jumped onto the bandwagon of issuing perpetual securities. SINGAPORE (Feb 17): Hyflux has announced a tentative restructuring plan which has still to be voted on in a scheme of arrangement by perpetual security holders, preference shareholders, and unsecured creditors which comprise medium term noteholders, banks and trade creditors. Up to S$500 million of perpetual subordinated capital securities at an issue price of S$1 will be offered to the public in Singapore. SINGAPORE - Alleged differences within the Hyflux board over advisers' fees, board representation and management oversight were cited by potential white knight Utico as reasons why the restructuring deal has not been signed by the embattled water treatment firm. Just purely from a financial management point of view, why was Hyflux willing to raise perpetual at 6% to redeem perpetuals at lower coupon rates. Notable projects. perpetual securities under equity rather than debt. Of that amount, $265 million is debt owed to medium-term note (MTN) holders, and $900 million to perp holders and preference shareholders, Hyflux chief executive Olivia Lum said yesterday. Olivia Lum, CEO of troubled firm Hyflux, has volunteered to contribute her entire stake of 267 million Hyflux shares and securities as part of a proposed restructuring plan for the troubled water treatment company. It seems that in 2010, Hyflux bid for the water contract at a first-year price that was the lowest compared to any desalination plants in Singapore. After attending the G20 meeting in Osaka, PM Lee said that the world leaders did not make much progress on the challenges facing the world I wish to point out. This gave people the false impression that everything is ok and that the preference shares will be redeemed. 54, or an implied return rate of 10. Watch Out for Hyflux's Omission of Ordinary Dividends Hyflux announced its half year financial results last month. Under the proposed plan, Hyflux would pay holders of perpetual capital securities and preferred shares S$27mn ($20mn) in cash and give them about 10. https://secure. That turned out to be a huge mistake. The unfolding Hyflux saga is like a cheesy Taiwanese drama series – so bad that its good. After reading Hyflux’s offer document for the perpetual capital securities issue last year, it appears the interest payment to the perpetual security holders is, indeed, mandatory in nature. New claims of more than US$65 million. THE BUSINESS TIMES perpetual securities - Find perpetual securities News & Headlines, insight and analysis in Singapore, Asia-Pacific & global markets news at The Business Times. 54, or an implied return rate of 10. 7 per cent, under the company's. I used to own its existing 6% preference shares when it launched in 2011. Hyflux defaulted its coupon payment for its 6% perpetual securities and has applied for a debt reorganization and in the worst case scenario, it may even go bankrupt. Open a FREE FSMOne account and manage all your investments conveniently in ONE place. The question is: If hyflux does not call N2H, but continues to pay, what kind of yield will the market require? I do not know, but current yields are juicy enough for me. Perpetual securities - what to know when you are buying (Genting, Hyflux) May 20, 2012 by lionelling Leave a comment Everyone would probably need some bonds in his portfolio - fixed income securities add certainty to the uncertainty that penny stocks and speculative buys bring. SINGAPORE - Hyflux chief executive Olivia Lum has volunteered to contribute her entire stake of 267 million Hyflux shares and securities as part of a proposed restructuring plan for the troubled. However, the total value of the deal could be S$535 million Singapore—Middle Eastern utility company Utico will buy an 88 percent stake. The Securities are perpetual capital securities with no fixed redemption date, and Hyflux may, at its option and on giving not less than 30 nor more than 60 days' irrevocable notice to the Securityholders, redeem all (and not some only) of the Securities on 27 May 2020. Two reasons: a longer-duration bond would've likely been cheaper; perps are accounted as equity, which suggests to me that Hyflux's debt ratios could've been too problematic for them to issue normal debt (?). At the end of 2017, Hyflux had a cash balance of S$314. Also halted: payments on its high-yield perpetual securities. Dear Financial Horse. said its chief executive officer Olivia Lum volunteered to contribute her entire stake of 267 million shares and other securities in the embattled water-treatment company as part of a. Hyflux has set out a reorganisation plan to keep the water treatment firm going but which could have investors suffering heavy losses. Why is that so, if you may ask? After all, 34,000 investors had lost their life savings investing in Hyflux preference shares and perpetual securities. On Thursday night, Mr Menezes met a "reflective sample" of around 60 of Hyflux's retail perpetual and preference shareholders through the assistance of the Securities Investors' Association (Singapore), Mr Sandrasegara said. She declared dividend in species for hyflux, and then declare dividend on the hyflux preference shares (which is the last coupon payment before redemption). Hyflux has the right but not the obligation to redeem its perps at the first call date. 5 million) they plonked down in the troubled Singaporean water and power firm's preference and perpetual shares. Hyflux 6% p. maybe lesser. 7 per cent comprising of 3. We retailer are fools. 26 units) supposedly worth 7. At the same time, perpetual security prices will fall as the difference in yield between it and other alternatives decrease. Hyflux CEO and Executive Chairman Olivia Lum and the company's board of directors said on Saturday that if the company's restructuring plan is approved, they would contribute all of their shares and entitlements as holders of preference shares and perpetual capital securities, or the PNP, to be distributed to other PNP holders. Hyflux Ltd ("HYF") released preliminary restructuring terms. 7 per cent, under the company's. https://secure. 26 per cent share of the reorganised company. Hyflux has been advised that the payment of the distribution on its S$500 million 6. One major drawback to these types of bonds is that they are not redeemable. There are a total of about 34,000 holders of such securities, according to an external spokeswoman for Hyflux. Hyflux has completed projects in Singapore, China, Southeast Asia, the Middle East, and Algeria. Basically, perpetuals securities pose as equity but are actually debts. In the case of Hyflux 6% Perpetual Capital Securities (Perps), it is supposed to be callable on 27 May 2020 and every six monthly thereafter (27th Nov 2020, 27th May 2021, 27th Nov 2021). Issuers pay coupons on perpetual bonds forever, and they do not have to redeem the principal. Trading in the Securities will commence on 'Ready' basis with effect from 9. SINGAPORE - Holders of Hyflux perpetual securities and preference shares, who are owed $900 million, will receive a total of $27 million in cash and a 10. 89 01/2016 SGD 55 mio Do not know much of the details because the warning label says its UNLAWFUL to distribute to anyone who is not a beneficial owner of the bonds So I am not supposed to know anything except that I am guessing it is some changes to perhaps some financial covenants in their MTN programme, much like the case of Aspial. Conclusion. These instruments carry a cumulative dividend of 6% a year and would be classified as financial liabilities — but for the company's right to defer the cash payments indefinitely. SunREIT's perpetual bonds will be used primarily to fund future asset purchases. Hyflux Perpetual Securities Saga - Lessons to be Learnt Hyflux, the once the poster boy (or girl) of Singaporean entrepreneurship has stunned the market by in May 2018 by applying to the court for bankruptcy protection in order to reorganize its debt. 1) Perpetual securities imo are a red flag. 8 billion restructuring plan. 25 per cent. Trading in the Securities will commence on 'Ready' basis with effect from 9. The Hyflux restructuring plan unveiled For every S$1,000 invested, a holder of Hyflux's perpetual securities and preference shares will recover S$106. According to an announcement, it based the move on the advice of its advisors which was released on 22 May 2018. Net gearing is about 39%. "Punitive" Step-Up interest rate. Unless otherwise defined, we adopt the terms defined in the scheme of arrangement proposed by the Company ("Hyflux Scheme"). Meanwhile, a report by ratings agency S&P on April 8 pointed out that Hyflux managed to issue perpetual securities in May 2016 even though its operating performance in the previous years have been. We retailer are fools. , Monday, 30 May 2016. The short and abbreviated names are 'Hyflux 6% PerCapSec' and 'HYFLUPCS' respectively. 98 (98% gearing!). Hyflux's debt, including bank loans, subordinate loans such as perpetual securities and preference shares, and medium term notes, sums up to over 3 billion Singapore dollars ($2. 26 per cent share of the reorganised company. SINGAPORE - Hyflux chief executive Olivia Lum has volunteered to contribute her entire stake of 267 million Hyflux shares and securities as part of a proposed restructuring plan for the troubled. In the case of Hyflux 6% Perpetual Capital Securities (Perps), it is supposed to be callable on 27 May 2020 and every six monthly thereafter (27th Nov 2020, 27th May 2021, 27th Nov 2021). After attending the G20 meeting in Osaka, PM Lee said that the world leaders did not make much progress on the challenges facing the world I wish to point out. 5% below par to 93. After reading Hyflux's offer document for the perpetual capital securities issue last year, it appears the interest payment to the perpetual security holders is, indeed, mandatory in nature. SINGAPORE - The Monetary Authority of Singapore said on Monday morning (April 8) that its supervisory reviews to date have not uncovered any impropriety on the part of DBS in performing its roles as both issue manager and distributor of Hyflux perpetual securities in 2016. In 2016, Hyflux's $300 million perpetual securities were selling like hotcakes as wealth builders rushed to purchase them like holy water. After Genting launched a perpetual bond issue that was only for institutional or high net worth investors last month, they have decided to launch one for retail investors too. About 34,000 Hyflux perpetual securities and preference shareholders are owed a total of $900 million, and a group of them staged a protest at Hong Lim Park’s Speakers’ Corner on 30 March against Hyflux’s restructuring plans and recent developments. So far, some estimated. After attending the G20 meeting in Osaka, PM Lee said that the world leaders did not make much progress on the challenges facing the world I wish to point out. On Jan 23, 2014, Hyflux issued S$300 million 5. A big portion of the investments were made. This game is totally unfair The bank they have their own corporate lawyers. Hyflux, will be issuing $300 million in perpetual securities with an option to up-size the issue to $500 million in the event of over-subscription. Once this CDP account has been registered/approved by the The Central Depository Pte Limited ("CDP"). Net gearing is about 39%. Notable projects. Those securities are in dire straits after Hyflux last week scrapped an accord with SM Investments Pte. We provide a range of products - Funds & ETFs, Bonds, Stocks, FSM MAPS (Robo Advisory Service) and Insurance. Hyflux’s “far from perpetual” securities By Mak Yuen Teen Note: This is part of a comprehensive case study about Hyflux currently being written, which also covers its business model, financial management, corporate governance, remuneration policies, disclosures and reorganisation. Over 800 individuals have petitioned President Halimah Yacob to appoint a commission of inquiry to look into Hyflux. Therefore, it may be treated as equity, not as debt. How did Hyflux investors lose so much money & how to avoid a similar fate By AutoWealth | 2nd May 2019 (5 Min Read) The recent development on Hyflux came as a shock to the 34,000 Hyflux perpetual securities and preference shareholders who are owed a total of S$900 million. Notice: Undefined index: HTTP_REFERER in /home/sites/heteml/users/b/r/i/bridge3/web/bridge3s. SINGAPORE - Hyflux chief executive Olivia Lum has volunteered to contribute her entire stake of 267 million Hyflux shares and securities as part of a proposed restructuring plan for the troubled. This is because Hyflux Ltd intends to preserve cash in order to finance the completion of its existing projects and its operations, both locally and abroad in the near future. Hyflux’s restructuring is complicated by its sale of perpetual bonds and preference shares to retail investors. It just so happened that I came across this ST article on the Hyflux preference shares which I remember talking about in 2016 a while after they issued their perpetual bonds. The downfall of Hyflux had caused major suffering to many Singaporean investors whom had invested their hard earned money for the preferential shares and perpetual securities. In a media statement, after a meeting with SIAS, chief executive of Utico, Richard Menezes, made an offer to the retail investors in Hyflux perpetual securities and preference shares, if Hyflux. Yet the banks has a priority to claim over the retailer. The last they did that was in 2011 and I made a 4 part series on preference shares here. Perpetual securities also take precedence over common stock when it comes to dividends and distributions. 2 S cent, down from 0. Unless otherwise defined, we adopt the terms defined in the scheme of arrangement proposed by the Company ("Hyflux Scheme"). I soon learned of the plight of some elderly investors who had invested sums of $200,000 or even their life savings, findings echoed in the Straits Times article today. In contrast, perpetual securities can afford to miss dividends/distributions without any credit event. If my plan is to hold long term, 2020 PS maybe be better as the price may go up after Oct as this implied Hyflux is still paying. SINGAPORE: United Arab Emirates-based utility Utico FZC is offering some payments to retail investors in Hyflux Ltd. 98 (98% gearing!). SunREIT's perpetual bonds will be used primarily to fund future asset purchases. Watch Out for Hyflux's Omission of Ordinary Dividends Hyflux announced its half year financial results last month. Investors who bought into S$900 million of Hyflux's perpetual securities have been angered by the steep haircut that would be imposed by the company under its S$2. Besides its shares falling 5. We, at Shares Investment, decided to look into this as the price for the Hyflux 6% (CPS) Cum Preference Class A 10 dived from more than $90 on 1 February 2018 to as low as $62. In addition, investors should also note that, as with typical perpetual capital securities, payment of distributions under the Securities may also be deferred for an indefinite period and investors have no recourse to the Issuer if such deferral is made in accordance with the Terms and Conditions. Here is a brief synopsis of the proceedings during. 00% Perpetual Capital Securities (SGX:BTWZ) which was scheduled on 28 May 2018 (on account of 27 May 2018 falling on a Sunday) should not be made at this point in time. HYFLUX LTD (600. As a final note, Hyflux has been in constant communications with the Securities Investors Association (Singapore) (SIAS), and will organise town hall meetings with it for the noteholders under the MTN Programme, holders of the perpetual securities, their respective trustees, and the holders of the preference shares. 26 units of Hyflux shares (assuming 19. , Monday, 30 May 2016. 7 per cent comprising of 3. New claims of more than US$65 million. 7% to 50 cents, a tranche of perpetual securities the company issued only in May with a coupon of 6% have fallen 6. Two reasons: a longer-duration bond would've likely been cheaper; perps are accounted as equity, which suggests to me that Hyflux's debt ratios could've been too problematic for them to issue normal debt (?). e, high-risk bonds). How Hyflux lost nearly S$2 billion in value in less than 10 years. However, if we count the perpetual securities as debt, Hyflux's debt-to-EBITDA, debt-to-market cap and debt-to-total capital ratios would jump to dizzying levels at 23. Utico also intends to offer the cash equivalent of a 4 per cent stake in the enlarged Utico group plus additional cash to holders of Hyflux's retail perpetual securities and preference (PNP. On Thursday night, Mr Menezes met a "reflective sample" of around 60 of Hyflux's retail perpetual and preference shareholders through the assistance of the Securities Investors' Association (Singapore), Mr Sandrasegara said. How did Hyflux investors lose so much money & how to avoid a similar fate By AutoWealth | 2nd May 2019 (5 Min Read) The recent development on Hyflux came as a shock to the 34,000 Hyflux perpetual securities and preference shareholders who are owed a total of S$900 million. Just like Noble and Swiber were for corporate junk bonds. Also halted: payments on its high-yield perpetual securities. Read more at straitstimes. May 2020 payment时payment rate会变成 Four-year swap offer rate (SOR) + Initial spread of 4. these bank can utilize these resources to play with hyflux , the court all day long. The ISIN Code is SG31B4000005. On Sat (30 Mar), at least 500 people went to Hong Lim Park to protest against Hyflux. 98 figure does not account for the change in Hyflux's cash and debt levels that could occur after it issues the new perpetual securities. SINGAPORE (Aug 23): Securities issued by Hyflux have been under selling pressure since Aug 12. 75% would cost them $17. 26 per cent share of the reorganised company. On 17 May 2016, Hyflux Ltd announced their Offer of up to S$300 million worth of a perpetual security at a rate of 6% of the principal amount with a potential step up every 4 years. In 2016, Hyflux's $300 million perpetual securities were selling like hotcakes as wealth builders rushed to purchase them like holy water. They got me thinking about another well-received perpetual security issue back a couple of years ago – Genting Singapore. Before the issuance of the perpetual bonds, Hyflux’s net gearing ratio (net debt to equity ratio) was 0. This morning, I was quite excited to receive news of another retail bond. 8% raised in July 2014. Perpetual capital securities in the case of Genting pay a “distribution at predefined distribution rate” while that for Hyflux pay a “dividend at predefined dividend rate”. HYFLUX LTD (600. 6 S cent per share, versus an EPS of 1. 961 which means we are still buying at a discount although it is a small one. Hyflux Ltd Annual Report 2014 Notes to the Financial Statements Joint arrangements Joint arrangements are arrangements of which the Group has joint control, established by contracts requiring unanimous consent for decisions about the activities that significantly affect the arrangements returns. PERPETUAL securities have been in the market for some time now, and media reports have explained the differences between them and regular bonds, so it is puzzling that the Monetary Authority of Singapore (MAS) has decided to issue an alert only now ('Note key risks in perpetual securities, MAS cautions'; Thursday). Both bonds were for institutions and. 14 billion) unsecured debt load under an even brighter spotlight. 59% which is very high, probably the highest in the market right now. SINGAPORE: For every S$1,000 invested, a holder of Hyflux's perpetual securities and preference shares will recover S$106. Meanwhile, a report by ratings agency S&P on April 8 pointed out that Hyflux managed to issue perpetual securities in May 2016 even though its operating performance in the previous years have been. This time it's from Hyflux. 3% of the reorganised company, according to an. 7%, only 3% is paid in cash and the other in shares of Hyflux. 25 per cent. As perpetual securities should really be a 'loan', the 'more accurate' total equity should be modified to (278,690 - 218,087) = 60,603. 80 on 20 February 2018. Hyflux, Singapore’s largest water treatment company by market value, has closed a S$175 million US$140 million perpetual bond, the first Singapore dollar-denominated perpetual in more than three months and the company’s second this year. According to the offering circular, if Hyflux do not redeem the Perps on 27 May 2020, the interest will step up by 2%. On 17 May 2016, Hyflux Ltd announced their Offer of up to S$300 million worth of a perpetual security at a rate of 6% of the principal amount with a potential step up every 4 years. On 30 May 2016, Hyflux raised SGD500 million of perpetual securities with an interest rate of 6%. If there is any lesson to be learnt from the financial debacle of debt-ridden water treatment company Hyflux, it must relate to the issuance and investment in perpetual bonds or securities. 8% Perpetual Capital Securities ("Capital Securities"). Each board lot of Securities will comprise S$1,000 in principal amount of Securities.