Monday, February 17, 2014

Capital Mall Trust (CMT) bond issue timeline

I finally managed to get a digital copy of the prospectus for the Capital Mall trust bonds. Couldn't find it at MAS Opera site, as promised by them. Anyway, when I tried to get the bonds through internet banking, the prospectus are there for all to read.

No mention of any early redemption or special step up interest. But again, the clauses inside the prospectus must have included something for them to exit the bond, subject to certain conditions happening. Just like the F&N bonds and the very recent DBS preference shares.

Here's the all important timeline of events:

Seems like we can get the money back a day after the last closing date, which is tomorrow on 18th Feb 2014, noon. You'll be issued the bonds on 20th Feb, meaning that you can check your CDP account to see if the bonds are credited to your account. But usually, just like any IPO, it's faster to just check and do a back calculation to see how much money put in is refunded back, and hence how much is invested. The bonds will commence trading on 21st Feb, which is this Fri.

I'll expecting to see the bond trading above par, maybe around 1.00 to 1.03, the latter giving a yield of 2.99% instead of the coupon yield of 3.08%. We shall see come this Friday.