GLP hybrid

Private banks lap up GLP’s S$500 million hybrid

The perpetual loses equity treatment from Fitch after April 2017, which investors see as a strong incentive for GLP to call the bonds.

Singapore-listed Global Logistics Properties GLP on Wednesday evening priced a S$500 million $385 million perpetual at a yield of 5.5% after winning strong support from private banks, which took 78% of the deal. That demand was fuelled by a 0.25% private banking rebate and GLP’s strong name recognition among Singapore investors.

The deal, which cannot be called during the first five years, was marketed to investors at the area of mid-to-high 5% and the final pricing was said to be 2% to 3% tighter than what GLP could have achieved in the dollar bond market, assuming it could even have priced a deal given the parlous state of markets....

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