Sembcorp Industries’ wholly-owned subsidiary Sembcorp Financial Services has, on Oct 27, issued a notice of redemption to the holders of the bonds who have elected to redeem and prepay, on Nov 10, 2020, all the outstanding bonds at their principal amount together with unpaid interest accumulated to the redemption date.
The notice was issued as part of the ongoing optimisation of Sembcorp Financial Services’ debt portfolio.
Sembcorp Financial Services will also be paying a one-time break funding cost to each bondholder who has submitted a claim, in connection with the redemption of the bonds.
Sembcorp Financial Services says it intends to fund the redemption price through a mix of drawdowns under its credit facilities and cash. The refinancing is expected to achieve annual interest cost savings of approximately $25 million to $35 million.
Shares in Sembcorp Industries closed 6 cents higher or 4.1% up at $1.54 on Oct 27.