OCBC Bank has priced $1 billion of perpetual capital securities at a distribution rate of 4 per cent, lower than the initial guidance of 4.375 per cent. The perps are first callable in five year's time. If they are not called, the distribution rate will be reset on the call date and every five years thereafter to an initial spread of 181.1 basis points over the prevailing five-year Singapore dollar Swap Offer Rate.
Issued under OCBC's US$30 billion (S$41 billion) global medium-term note programme, the perps are intended to qualify as Additional Tier 1 capital under Monetary Authority of Singapore requirements. Net proceeds from the issue of the capital securities will be used for the general corporate purposes of the bank.
The perps are to be rated Baa1 by Moody's, BBB-by Standard & Poor's and BBB by Fitch.
They will be issued next Friday.
Sheng Siong Group
Supermarket chain Sheng Siong Group said the Housing Board has accepted a tender for a lease at Block 785E Woodlands Rise to open a supermarket. It occupies about 10,030 sq ft and is expected to be operational next month.
Separately, Sheng Siong Supermarket has leased from Dollar Land Singapore new premises at 1 Woodlands Road, Junction 10, comprising 20,370 sq ft of retail area. This lease is conditional upon Dollar Land delivering vacation possession of the premises to Sheng Siong on Sept 26. The new store should be operational before the end of the year. These additions will take the group's store count to 52.
Sheng Siong had also submitted the highest bids for two new shops at Block 451 Bukit Batok (6,880 sq ft) and Block 573 Woodlands (10,730 sq ft) and is awaiting the HDB's acceptance of the bids and the grant of the leases.
The Stratech Group
The husband-and-wife team that controls The Stratech Group will convert more of the firm's debt owed to them into equity than previously announced. The higher debt conversion amount will allow executive chairman David Chew and executive director and chief corporate officer Leong Sook Ching to retain their 34 per cent shareholding, after a proposed U$20 million (S$27 million) placement by private equity firm Boulevard Capital Partners.
Mr Chew and Ms Leong will convert about $15.4 million of current and future loans owed to them by Stratech into 233.4 million new Stratech shares at 6.6 cents apiece.