Bond market data and technology, BondEvalue

BondEvalue

Bond market data and technology

BondEvalue is a Singapore-based Fintech that specializes in bond market data and technology. The company's information services business offers bond market data on hard-currency corporate & sovereign bonds across Asia, Middle East, Europe and the Americas. The data, which includes bond prices, yields, news and analytics, is offered to end investors via interactive Mobile and Web Apps. Investors can sign up for a free trial of the service either via the company's website (https://bondevalue.com) or by downloading the BondEvalue Mobile App (http://onelink.to/wej7jq). BondEvalue is also developing an electronic bond exchange, BondbloX in Singapore that allows investors to trade bonds electronically in smaller sizes (US$1,000 or equivalent). For more information, visit https://www.bondblox.com/

Bond Market Data and Technology

Credit

US equities ended higher with the S&amp;P and Nasdaq up 0.5% and 0.9%. Sectoral gains were led by Consumer Discretionary and Energy, up 2.1% and 1.4%. US 10Y Treasury yields eased 1bp to 1.63%. European stocks were mixed with the DAX and FTSE up 0.4% and 0.3% while the CAC was down 0.3%. Brazil’s Bovespa was up 2.3%. In the Middle East, UAE’s ADX was down 0.2% while Saudi TASI was up 0.4%. Asian markets have opened broadly mixed – Shanghai was flat, Nikkei higher by 1.8% while HSI and STI were down 0.4% and 0.3% respectively. US IG and HY CDS spreads were 0.7bp and 0.5bp tighter. EU Main and Crossover CDS spreads were 0.2bp and 0.3bp tighter. Asia ex-Japan CDS spreads tightened by 1.1bp.

ICBC Financial, Mapletree Launch Bonds; Macro; Rating Changes; New Issues; Talking Heads; Top Gai...

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> acquires logistics facility in South Korea at 4.2% NPI yield; Accretive to DPU</h3><ul><li>MLT has proposed an acquisition of Yeoju Logistics Centre in South Korea for KRW135bn (S$153.8m). The property spans over 70,400sqm in total GFA on ~56,200sqm of freehold land, with two blocks of 3-storey dry warehouses that were completed in 2019. The property is equipped with high quality building specifications, including strong floor loading of over 20kg newton psm, high floor-to-ceiling height of 10-17m, large contiguous floor plates of up to 14,200sqm and a full sprinkler system. The Property was independently valued at KRW139.6bn as at 2Sep21</li><li>The Property is strategically located in northern Yeoju, a newly established logistics hub situated northeast of the Yongin-Icheon market, which is the traditional logistics cluster in the Seoul Metropolitan Area. It is fully leased to one of South Korea’s largest online fashion platforms and a domestic third-party logistics service provider. The acquisition will raise MLT’s e-commerce revenue exposure in South Korea from 24% to 31%. It comes with a WALE (by NLA) of ~3.1yrs and built-in annual rent escalations</li><li>The acquisition is estimated to generate a NPI yield of 4.2% based on the property purchase price and is expected to be DPU accretive. Assuming the acquisition is 100% debt funded, MLT’s aggregate gearing ratio will be ~40.3%. The acquisition is expected to be completed by 4Q21. Upon completion, MLT’s total portfolio will comprise 167 properties with AUM of S$11.1bn.</li></ul>

SingaporeMapletree Logistics Trust (MLT SP) acquires logistics facility in South Korea at 4.2% NPI yield; Accretive to DPUMLT has proposed an acquisition of Yeoju Logistics Centre in South Korea for KRW135bn (S$153.8m). The property spans over 70,400sqm in total GFA on ~56,200sqm of freehold land, with two blocks of 3-storey dry warehouses that were completed in 2019. The property is equipped with high quality building specifications, including strong floor loading of over 20kg newton psm, high floor-to-ceiling height of 10-17m, large contiguous floor plates of up to 14,200sqm and a full sprinkler system. The Property was independently valued at KRW139.6bn as at 2Sep21The Property is strategically located in northern Yeoju, a newly established logistics hub situated northeast of the Yongin-Icheon market, which is the traditional logistics cluster in the Seoul Metropolitan Area. It is fully leased to one of South Korea’s largest online fashion platforms and a domestic third-party logistics service provider. The acquisition will raise MLT’s e-commerce revenue exposure in South Korea from 24% to 31%. It comes with a WALE (by NLA) of ~3.1yrs and built-in annual rent escalationsThe acquisition is estimated to generate a NPI yield of 4.2% based on the property purchase price and is expected to be DPU accretive. Assuming the acquisition is 100% debt funded, MLT’s aggregate gearing ratio will be ~40.3%. The acquisition is expected to be completed by 4Q21. Upon completion, MLT’s total portfolio will comprise 167 properties with AUM of S$11.1bn.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<p><a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934:1" rel="noopener">ESR-REIT (EREIT SP)</a> announced the proposed merger with <a href="https://www.smartkarma.com/entities/ara-logos-logistics-trust" target="_blank" data-smartkarma-citation="entities:937:1" rel="noopener">ARA LOGOS (ALLT SP)</a> by way of a trust scheme of arrangement. Under the scheme consideration, each ALLT unitholder will receive S$0.095 in cash and 1.6765 new EREIT units at an issue price of S$0.510. The total consideration implies a gross exchange ratio of 1.863x and a total scheme consideration of S$0.950 per ALLT unit, which is a 1.6% premium to the ALLT last close price of S$0.935 per unit (on 14 October). </p><p>The merger was widely anticipated to avoid conflicts of interest arising from the proposed acquisition of ARA Asset Management by <a href="https://www.smartkarma.com/entities/esr-cayman-ltd" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR Cayman (1821 HK)</a> for a total consideration of US$5.2 billion, which was announced on 5 August 2021. ESR Cayman which owns 67% of EREIT’s manager would also own 100% of ALLT’s manager on completion of the acquisition resulting in overlapping investment mandates.</p><p>A key issue is on pricing particularly the EREIT issue price of S$0.510 which is based on EREIT’s 52-week high. Notably, at the last close EREIT price of S$0.465, implies a scheme consideration of S$0.875 per ALLT unit, which is a -6.5% discount to the ALLT last close price of S$0.935 per unit (on 14 October). </p><div class="content-highlight"><p>As the cash consideration represents just 10% of the total scheme consideration, ALLT unitholders have greater exposure to any post-merger share price gains driven by the enlarged REIT’s higher free float, lower cost of capital, cost savings and higher growth potential. While short-term pricing concerns will linger, we note that the scheme consideration even at the last close EREIT price seems reasonable. Consequently, we believe that the merger will get the nod from both sets of unitholders.</p></div>

ESR-REIT (EREIT SP) announced the proposed merger with ARA LOGOS (ALLT SP) by way of a trust scheme of arrangement. Under the scheme consideration, each ALLT unitholder will receive S$0.095 in cash and 1.6765 new EREIT units at an issue price of S$0.510. The total consideration implies a gross exchange ratio of 1.863x and a total scheme consideration of S$0.950 per ALLT unit, which is a 1.6% premium to the ALLT last close price of S$0.935 per unit (on 14 October). The merger was widely anticipated to avoid conflicts of interest arising from the proposed acquisition of ARA Asset Management by ESR Cayman (1821 HK) for a total consideration of US$5.2 billion, which was announced on 5 August 2021. ESR Cayman which owns 67% of EREIT’s manager would also own 100% of ALLT’s manager on completion of the acquisition resulting in overlapping investment mandates.A key issue is on pricing particularly the EREIT issue price of S$0.510 which is based on EREIT’s 52-week high. Notably, at the last close EREIT price of S$0.465, implies a scheme consideration of S$0.875 per ALLT unit, which is a -6.5% discount to the ALLT last close price of S$0.935 per unit (on 14 October). As the cash consideration represents just 10% of the total scheme consideration, ALLT unitholders have greater exposure to any post-merger share price gains driven by the enlarged REIT’s higher free float, lower cost of capital, cost savings and higher growth potential. While short-term pricing concerns will linger, we note that the scheme consideration even at the last close EREIT price seems reasonable. Consequently, we believe that the merger will get the nod from both sets of unitholders.

ESR-REIT’s Proposed Merger with ARA LOGOS

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Yoma Strategic Holdings / Equity Bottom-Up

Key Singapore Market Moves and Flows in 3Q21

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> to acquire logistics facility in Malaysia with 5.4% NPI yield; Accretive to both NAV and DPU</h3><ul><li>MLT has proposed to acquire Mapletree Logistics Hub Shah Alam, Malaysia at a purchase price of RM404.8m (S$130.2m), 0.05% discount to an independent valuation of RM405m. The total transaction costs will be S$132.2m, comprising the acquisition price of ~RM404.8m (S$130.2), acquisition fee of ~S$0.7m and other fees and expenses of ~S$1.3m</li><li>The freehold property is s located in the free trade zone of the Port of Tanjung Pelepas, Southern Johor. Spanning a total NLA of c.131,986sqm, the property is comprised a block of single-storey warehouse with mezzanine floor offices and two blocks of double-storey ramp-up warehouses with mezzanine floor offices and other ancillary buildings. The property has a diversified tenant base comprising end-users as well as 3PLs leasing the premises as their Southeast Asian distribution hub for predominantly consumer goods, including subsidiaries of Decathlon and Maersk. The occupancy rate stands at 95% as at 30Jun21 with a WALE of ~3.5 years with built in rental escalation</li><li>The acquisition is expected to generate an initial NPI yield of 5.4% (based on purchase price) and will be accretive on NAV and distribution level. It will funded through a combination of the proceeds from the Equity Fund Raising, a drawdown of debt facilities and the issuance of the Senior ABS MTNs. Upon completion, MLT’s aggregate leverage ratio is estimated to be c.39.0%.</li></ul>

SingaporeMapletree Logistics Trust (MLT SP) to acquire logistics facility in Malaysia with 5.4% NPI yield; Accretive to both NAV and DPUMLT has proposed to acquire Mapletree Logistics Hub Shah Alam, Malaysia at a purchase price of RM404.8m (S$130.2m), 0.05% discount to an independent valuation of RM405m. The total transaction costs will be S$132.2m, comprising the acquisition price of ~RM404.8m (S$130.2), acquisition fee of ~S$0.7m and other fees and expenses of ~S$1.3mThe freehold property is s located in the free trade zone of the Port of Tanjung Pelepas, Southern Johor. Spanning a total NLA of c.131,986sqm, the property is comprised a block of single-storey warehouse with mezzanine floor offices and two blocks of double-storey ramp-up warehouses with mezzanine floor offices and other ancillary buildings. The property has a diversified tenant base comprising end-users as well as 3PLs leasing the premises as their Southeast Asian distribution hub for predominantly consumer goods, including subsidiaries of Decathlon and Maersk. The occupancy rate stands at 95% as at 30Jun21 with a WALE of ~3.5 years with built in rental escalationThe acquisition is expected to generate an initial NPI yield of 5.4% (based on purchase price) and will be accretive on NAV and distribution level. It will funded through a combination of the proceeds from the Equity Fund Raising, a drawdown of debt facilities and the issuance of the Senior ABS MTNs. Upon completion, MLT’s aggregate leverage ratio is estimated to be c.39.0%.

Singapore

Mapletree Logistics Trust is an Asia-focused logistics real estate investment trust. The Company invests in a diversified portfolio of income-producing real estate which is used for logistics purposes.

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Mapletree Logistics Trust (MLT SP)

ICBC Financial, Mapletree Launch Bonds; Macro; Rating Changes; New Issues; Talking Heads; Top Gai...

US equities ended higher with the S&P and Nasdaq up 0.5% and 0.9%. Sectoral gains were led by Consumer Discretionary and Energy, up 2.1% and...

BondEvalue

ASEAN Builder's Scoop (21Oct21)

MLT acquires South Korean logistics at 4.2% yield; AIT completes stage 1 of Mumbai DC; OHL provides loan to Pindan Group; MY-SG RTS may revive...

SCCM Asia Research

ESR-REIT’s Proposed Merger with ARA LOGOS

A key issue is on pricing particularly the EREIT issue price of S$0.510, based on EREIT’s 52-week high. While short-term pricing concerns will...

Arun George

Key Singapore Market Moves and Flows in 3Q21

In 3Q21, the STI saw its narrowest quarterly trading range since 3Q17, generating a 0.2% decline in total return, while the FTSE APAC Index...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (23Aug21)

MLT acquires MY logistics @ 5.4% yield; The Executive Centre new Co-working space at ORQ; JFC injects P3.7bn into DD industrial subs; RCR IPO...

SCCM Asia Research

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