Recently, quite a number of companies are trying to secure loan by issuing bonds or notes. Today, Singapore Airlines just announced that it will be raising money through bonds. SIA's $500 million bonds were sold in two tranches - $200 million of seven-year bonds at 3.145 per cent and $300 million of 10-year bonds at 3.75 per cent. The sale is part of its $2 billion multi-currency medium-term note programme launched last month. DBS is also issuing medium term notes under the a US$15b medium term note program.
One of the main reasons is that Fed had indicated that interest rate will rise next spring and companies looking for long term loans want to secure as much money as possible now, when the interest rate are still low or manageable.
This may be good news for retail investors who are looking to diversify their portfolio into bonds holding. Look out for more companies that are looking to raise money through this path. I am sure more will follow in their foot steps.
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