Singapore’s Sembcorp Industries to redeem 3.55% bonds due 2024

By Taylor Fox

New York, Oct. 27 – Sembcorp Industries Ltd.’s wholly owned subsidiary, Sembcorp Financial Services Pte. Ltd., plans to redeem all of its outstanding S$1.5 billion 3.55% guaranteed bonds due 2024 on Nov. 10, according to a company announcement.

The notes, which are guaranteed by Sembcorp Industries, will be redeemed at par plus interest.

Sembcorp will also pay a one-time break funding cost to each bondholder who has submitted a claim under the terms and conditions of the bonds.

The notes will be redeemed as part of the ongoing optimization of Sembcorp’s debt portfolio.

Sembcorp plans to fund the redemption using a mix of drawdowns under its credit facilities and cash.

The refinancing is expected to achieve annual interest cost savings of S$25 million to S$35 million.

The issuer is a Singapore-based energy, marine and urban development group.

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