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Singapore stock market and companies daily report (CapitaCommercial Trust, Genting, Tiger Airways, Standard Chartered Bank) (March 19, 2010)

Contributed by Shares Investment

By Shares Investment

CCT Portfolio Seen Improving With Bond Issuance

CapitaCommercial Trust (CCT) on Wednesday said that it will issue $225m worth of convertible bonds and use 75-90 % of the proceeds to enhance its assets and refinance debt. In an update yesterday, CCT said that the convertible bonds issue has been fully placed out to institutional and accredited investors.

‘Although bite-sized, we think the proceeds from convertible bonds provides financial flexibility and paves the way for long awaited acquisition(s) and/or asset enhancement initiatives to enhance its office portfolio,’ said Goldman Sachs analyst Paul Lian, who has a ‘buy’ call on CCT.

With this latest convertible bond issue, CCT will have more cash on hand. But gearing is expected to climb in 2010 from 32% to 36%. However, CCT has no major refinancing pressure until its $355m convertible bond put option is due in May 2011 and $520m worth of commercial mortgage-backed securities is due in Sep 2011, estimated Goldman Sachs.

Genting Chairman Says Casino Is Doing Fine And Outlook Positive For Universal Studios

The performance of the casino at Resorts World Sentosa is ‘on track’ and expected to go above our own expectations, said Genting Group chairman Lim Kok Thay on the sidelines of the opening of Universal Studios Singapore (USS).

CIMB-GK cut Genting Singapore’s net profit estimate for the company by 17% to $299.2m, while OCBC Investment Research downgraded its revenue forecast by 6.7% to $1.9b. DBS Vickers noted that the number of visitors to the casino was averaging 20,000 daily, versus Genting’s expectation of 33,000 visitors. Lim questioned the accuracy of the forecast though, saying that the company has not released any numbers for the casino previously.

On the prospects for USS, Lim is confident and believes it will be the ‘number one’ theme park in Asia when being asked if the park could go the same way as Disneyland in Hong Kong, where visitor numbers have fallen since it opened in 2005.

Tiger Airways and Stanchart Ink Aircraft Financing Deal

Tiger Airways and Standard Chartered Bank (Stanchart) have inked 2 new financing deals for pre-delivery payments (PDPs) on 6 aircraft from Airbus and the purchase of 7 A320 aircraft, scheduled for delivery in December 2011. The bank is also appointed as lead arranger for Export Credit Agency-backed (ECA) finance for Tiger to buy 7 more Airbus 320s, expected to be delivered by January 2011. Bringing the number of aircraft owned by Tiger to 9, including 2 that were delivered in January and February this year. Tiger now has a fleet of 19 aircraft – and will have 68 by December 2015. Tiger’s controlling shareholders are Singapore Airlines (34.4%), Indigo Partners (15%), Ryanasia (11.2%) and Temasek Hldgs (7.7%).

This article is contributed by Shares Investment. Visit Sharesinv.com for the latest Singapore, Malaysia and China stock market news and reports.