Singapore-dollar bond markets plunged 44% to record-low $3.5b in Q1

FCL’s $700m issue is the largest deal year-to-date.

Singapore-dollar bond markets plunged 44% to $3.5 billion in the first quarter, the lowest first quarter period for SGD issuance in terms of proceeds since 2009.

Data released today by Thomson Reuters showed that the largest deal so far this year is FCL Treasury’s $700m subordinated perpetual bonds guaranteed by its parent firm Frasers Centrepoint as part of its $3 billion multi-currency debt issuance programme.

Foreign issuers tapping the Singapore-dollar bond market raised $1.3 billion thus far, a 16% decrease compared to the first quarter of 2014, despite the 85.7% increase in number of Singapore-dollar denominated bond issuance.

Meanwhile, Asia Pacific’s collective local currency bond volume amounted to US$108.3 billion, where Singapore dollar bonds accounted for 2.4% of the market share.

Southeast Asia’s aggregate local currency bond offerings raised a total of US$9.4 billion, a 51.6% decline from the US$19.4 billion raised in the first quarter of 2014.