Perpetual Securities have become the hottest cake in town now.

Genting Singapore last month raised S$1.8 billion from a perpetual securities issue–the largest ever single tranche Singapore-dollar bond deal.

This month, its retail offering of up to $500 million in perpetual securities has been subscribed fully.

As at the close of offer on Monday, valid applications amounting to $731.3 million were received under the public offer. A further $3 million in application monies was received for the reserve tranche.

In a statement, Genting Singapore said it will sell about S$497 million of the securities via a public offer. It will sell about S$3 million in the reserve offer, equal to the amount of subscriptions.

The notes will bear a 5.125% annual coupon until Oct. 18, 2022, and 6.125% thereafter.

While many people are begging the institutions to take their money, it is interesting to note that many investors are not even sure what they are getting into. Even the mainstream media journalists got it wrong. You should read this article: Perpetual securities not the same as perpetual bonds published in Straits Times Forum.

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
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