Anatomy of a Deal: Frasers bond turns heads

Frasers Centrepoint will return to the dollar bond market after its encouraging $200m debut last week. But some bankers are scratching their heads at the aggressive pricing.

Frasers Centrepoint plans to return to the dollar bond market in the future, after being encouraged by its $200m debut last week. But some bankers were left scratching their heads by the company’s aggressive pricing.

Frasers Centrepoint raised $200m from a five-year bond on Tuesday. After building demand on a two-day roadshow in Hong Kong and Singapore, the Singapore-based property company managed to get away with a coupon of just 2.50%. That was equivalent to 175bp over Treasuries.

The after-swap price was below what the company would have paid to raise funds in the Singapore dollar market. Indeed, it was so far below that one DCM banker...

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