Author's Note
For some perspective, we refer to the latest (3Q 2009) quarterly earnings presentation slides of CCT, which states that the average cost of debt is at 3.9%. So this new debt at a fixed rate is actually lower than the average. According to the slides too, the latest total debt stands at S$1,979.1 million.
Medium Term Notes (MTN)
Medium Term Note is a debt security that usually matures in 5 to 10 years, but can be less than 5 years. It will pay out a fixed coupon at a regular basis like bonds. In the case of this MTN, the coupon will be at a fixed interest rate of 3.5 per cent per annum payable semi-annually, maturing in about 3.5 years on 10 June 2013.
Medium Term Notes (MTN) Program
The MTN is usually connected to a medium term note program, which is a funding program used by issuers to receive debt funding on a regular and continuous basis. In the case of CCT, this issuance is actually part of the S$1,000,000,000 MTN program established on 20 November 2007.
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