“The issuance of the notes under the newly established multicurrency debt issuance programme will enable the group to diversify its funding sources and access medium term funding in addition to equity and bank loans,” says Lim Chung Chun, chairman and CEO of iFast Corporation.
The notes were “well-received” by both institutional and accredited investors, says Lim, and they were about 2.5 times over subscribed. Investors include those within the iFast ecosystem as well.
“A key distinguishing feature of the bond issue is that accredited investors and institutional investors are able to purchase the bonds at issuance in denominations of $10,000, with incremental amounts of $5,000,” says Wong Tze Hong, executive director of Bondsupermart Malaysia.
To the group’s knowledge, this is the smallest minimum issue denomination for a Singapore dollar (SGD)-denominated wholesale medium term note to date.
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“We hope this sets a trend for future bond issuances, where smaller minimum lot sizes become the norm, which will allow investors much better diversification when investing in bonds. This is also aligned with the group’s Bond Express service, which was first launched in 2016, where a selected list of bonds is offered in smaller lot sizes, enabling accredited investors and institutional investors to purchase different bonds in lower lot sizes, helping them to diversify their bond investments,” he adds.
Oversea-Chinese Banking Corporation (OCBC) was the sole dealer for this issue. The notes are expected to be issued on June 11.
Shares in iFast closed 1 cent higher or 0.15% up at $6.78 on June 3.
