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Clifford Chance advises on record S$1.8 billion perpetual securities issue

14 March 2012

Clifford Chance advises on record S$1.8 billion perpetual securities issue

Leading international law firm Clifford Chance has advised DBS and HSBC as joint global co-ordinators, and Deutsche Bank, JPMorgan and CIMB as joint lead managers and joint bookrunners on Genting Singapore PLC's S$1.8 billion perpetual securities issuance, Asia's largest hybrid securities issue to date and the biggest Singapore dollar-denominated bond to be sold in a single tranche.

"Clifford Chance lawyers in Hong Kong advised on Asia's first corporate hybrid issuance by Cheung Kong Infrastructure in late 2010, an issuance that kick-started the perpetual securities market after a ten year hiatus," said Hong Kong partner Matt Fairclough, who led the cross-border team. "Since then, our teams across Asia have advised on a significant number of the key transactions.  We continue to see real interest in the hybrid securities market across Asia, and particularly in Singapore. Very high quality names are coming to the markets, with investors showing great interest in the product." 

Matt, together with partner Raymond Tong in Singapore, advised the banks on the structuring of the issuance, which achieves equity accounting treatment under IFRS and equity credit from both Moody's and Fitch, and the Singapore-law governed documentation. 

Raymond said, "We are very pleased to have assisted the banks on this historic transaction. It's a very exciting time to be working on these deals, and this transaction is further evidence of maturing Asian local currency bond markets. We look forward to the continued development of this market." 

The Securities are perpetual in nature and confer a right to receive distribution from their issue date at the rate of 5.125% per annum, subject to a distribution rate step-up on 12 September 2022.

The partners were supported by senior associate James Booth and associate Thomas Kwan in Hong Kong, and counsel Wern Sern Bin and associate Ryan Lin in Singapore.