Ezion secures US$1.5 bil refinancing package in final leg of restructuring exercise

SINGAPORE (Feb 7): Offshore & marine group Ezion Holdings says it has secured refinancing totaling to approximately US$1.5 billion ($2 billion) from its six secured lenders, namely: DBS, OCBC, UOB, Maybank, CIMB and Caterpillar Financial.

Group CEO Chew Thiam Keng and his family members have also offered 100 million of their personal shares in total to cement support from the secured lenders.

Cracks are showing in China’s shadow banking industry

SHANGHAI (Jan 24): Strains are spreading in China’s US$15 trillion ($19.8 trillion) shadow banking industry as investors pull back from the debt-like savings products that helped drive leverage to dangerous levels.

OUE Hospitality Trust's valuations still unattractive despite lower cost of debt: OCBC

SINGAPORE (Jan 5): OCBC Investment Research is maintaining its “hold” call on OUE Hospitality Trust on valuation grounds with a higher fair value estimate of 83 cents from 82 cents previously.

This comes on expectations of a 6.2% FY18 yield against Thursday’s closing price of 88 cents per unit, after adjusting the research house’s model parameters on a lower average cost of debt post the grant of a term loan and revolving loan facilities.

OUE Hospitality Trust's early refinancing to result in higher DPU, says RHB

SINGAPORE (Jan 3): RHB is maintaining its “buy” call on OUE Hospitality Trust (OUE HT), while raising its target price on the REIT to 91 cents from 88 cents previously to factor in a cost of equity (COE) of -7.2% and 2% terminal growth for FY18F and FY19F, respectively.

This implies that the stock offers a respective FY18F-19F yield of 6.2% and 6.6% as distribution per unit (DPU) projections are adjusted higher by 2-3%, after taking into consideration interest cost savings from the early refinancing of the trust’s debts as its manager announced on 19 Dec.

Vietnam’s surprise rate cut may spur growth amid credit worries

HANOI (July 10): Vietnam’s surprise lowering of interest rates for the first time in three years may help to support economic growth, but raises credit risks in a nation still grappling with a hangover of bad debt.

The central bank reduced the refinance rate by 25 basis points to 6.25% late on Friday and also lowered the discount rate to 4.25% from 4.5%. The changes come into effect on Monday, the State Bank of Vietnam said on its website.

Risky and complex US loan wagers are red hot in low-yield Asia

NEW YORK (May 19): Asia’s yield-hungry investors have a lot riding on the financial engineers of Wall Street.

Faced with near record-low interest rates at home, money managers in Korea, Japan and China have been piling into complex and increasingly risky structured loan products in America. Their investments in collateralized loan obligations -- including the high-yield “equity’’ tranches most exposed to defaults -- have helped drive a doubling of issuance in 2017.

Nam Cheong announces over $300 mil in liabilities; mulls restructuring

SINGAPORE (April 24): Nam Cheong, the OSV builder has revealed the extent of “various obligations” owed to financial lenders and trade creditors that have fallen due, and that it expects to fall due.

This includes current loans and borrowings of RM948.7 million ($300 million) as well as RM278.5 million pertaining to medium term notes that are due for repayment this coming Aug 28. 

Singtel signs $4.1 bil worth of credit agreements in Singapore & Australia

SINGAPORE (April 21): Singtel Group says its subsidiaries have entered into agreements for total credit facilities of approximately $4.1 billion in Singapore and Australia, for general corporate purposes and refinancing of existing facilities.

In Singapore, Singtel Group Treasury signed an agreement which is guaranteed by Singtel for a three-year $2.5 billion committed revolving facility with 12 banks including OCBC, Standard Chartered, DBS and UOB.

Singapore bank shareholders, brace for more pain: Bloomberg Gadfly

SINGAPORE (Feb 16): Singapore banks' problem with oil and gas services firms has just stepped up a notch.

Pain from distressed loans to offshore energy companies dominated Oversea-Chinese Banking Corp.'s earnings call Tuesday and will probably be a hot topic when DBS Group Holdings Ltd. reports its own numbers Thursday. OCBC Chief Executive Officer Samuel Tsien repeated several times that he can't guarantee the worst is over.

Judging by both his remarks and some recent restructuring events, however, the losses may start coming in a slightly different form.

Kiss goodbye to high REIT yields

SINGAPORE (Dec 20): DBS Group Research has an “underweight” rating on the Singapore REIT sector as it anticipates four interest rate hikes by the US Federal Reserve in 2017 alone.

“Heightened expectations of a faster rate hike momentum in 2017 under new US President Trump’s administration will likely cast a shadow on Singapore REITs’ ability to maintain its share price outperformance going forward,” say DBS analysts Derek Tan and Mervin Song.

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