Oxley  - Can They Repay the USD Bonds Next Year?

Lakshmi Iyer, CFA

Credit

<p>There has been concern regarding <a href="https://www.smartkarma.com/entities/oxley-holdings-ltd" target="_blank" data-smartkarma-citation="entities:1097:1" rel="noopener">Oxley Holdings (OHL SP)</a>  outstanding debt.  We think they will be able to repay debts due in 2020. The current Covid19 environment gives Oxley pressures in repaying the 2021 bonds using its cashflows. We think the company will have to rely on expected 2022 cashflows (provided Singapore property sales pick up after the circuit breaker) to refinance the 2021 debt.</p><div class="content-highlight"><p>Fundamental credit research focused on Asian high yield, including coverage of areas which are generally overlooked such as Indian finance companies and non-USD denominated credit (SGD).  Sector agnostic. Research process consists of rigorous bottom-up company analysis combined with spotting market dislocations to provide trade ideas.</p></div>

There has been concern regarding Oxley Holdings (OHL SP)  outstanding debt.  We think they will be able to repay debts due in 2020. The current Covid19 environment gives Oxley pressures in repaying the 2021 bonds using its cashflows. We think the company will have to rely on expected 2022 cashflows (provided Singapore property sales pick up after the circuit breaker) to refinance the 2021 debt.Fundamental credit research focused on Asian high yield, including coverage of areas which are generally overlooked such as Indian finance companies and non-USD denominated credit (SGD).  Sector agnostic. Research process consists of rigorous bottom-up company analysis combined with spotting market dislocations to provide trade ideas.

Oxley Holdings Ltd. – Potential Refinancing Requirements in 2021