About the Deal
Singapore Technologies Telemedia (STT) has launched a consent solicitation covering three series of SGD subordinated perpetual securities. This exercise is part of STT’s ongoing capital management as it looks to deploy recently generated cash into deleveraging.
· Series 003: SINTEC 4.100% Perpetual Corp (SGD)
· Series 004: SINTEC 4.200% Perpetual Corp (SGD)
· Series 005: SINTEC 5.500% Perpetual Corp (SGD)
Table 1: Issues Involved in the Consent Solicitation
|
Series 003 |
Series 004 |
Series 005 |
|
|
Coupon |
4.10% |
4.20% |
5.50% |
|
Coupon Dates |
2 January / 2 July |
3 May / 3 November |
11 January / 11 July |
|
Next Call |
2 July 2027 |
3 May 2029 |
11 July 2030 |
Two Things Bondholders are Asked to Approve
Amendment 1: Add a Make-Whole Redemption Event
None of the three series currently give STT the right to call before its first call date (beyond typical provisions like for taxation reasons). If passed, the amendment obliges STT to redeem all of that series' outstanding securities on 22 October 2026, at a pre-set Make-Whole Redemption Price plus accrued distribution.It's mandatory once passed, not an option STT may or may not exercise.
Amendment 2: Amend Notice Provision (Series 003 and Series 004 only)
Amends the terms to allow STT to satisfy notice requirements by publishing on the SGX-ST website instead of only by physical mail, for as long as the bonds stay listed.Both amendments are voted on together as a single Extraordinary Resolution per series - bondholders approve or reject the full package, not one item independently of the other.
Comparing two cases: Holding to Call (No Consent) Versus Consenting
Calculation Assumptions
- Holding of one full lot of bonds (S$250,000 principal).
- Accrued interest is calculated using the Actual/365 day-count convention, as stated in the pricing supplements.
- “Today” is taken as of 10 September 2026.
- Assumes voting in favour by 16 September and therefore qualify for the Early Consent Fee (0.50%).
Case #1: No consent / Resolution does not pass / Perpetuals are only called on first scheduled call dates
Table 2: Total Payout if Holding to First Call Date
|
Series 003 |
Series 004 |
Series 005 |
|
|
Call Date |
2 July 2027 |
3 May 2029 |
11 July 2030 |
|
Coupons Remaining |
2 |
6 |
8 |
|
Coupon Payments |
10,250 |
31,500 |
55,000 |
|
Principal Payment (S$) |
250,000 |
250,000 |
250,000 |
|
Total Payment (S$) |
260,250 |
281,500 |
305,000 |
Case #2: Consent given / Resolution passes / Make-Whole Redemption on 22 October 2026
Table 3: Total Payout if Consenting to the Make-Whole Redemption
|
Series 003 |
Series 004 |
Series 005 |
|
|
Day Accrued to 22 October 2026 |
112 |
172 |
103 |
|
Accrued Distribution (S$) |
3,145 |
4,948 |
3,880 |
|
Early Consent Fee (S$) |
1,250 |
1,250 |
1,250 |
|
Make-Whole Redemption Price (S$) |
253,592 (101.44% of principal amount)* |
261,923 (104.77% of principal amount) |
278,258 (111.30% of principal amount) |
|
Total Payout (S$) |
257,988 |
268,121 |
283,388 |
* Values rounded to 2 decimal places
Holding to Call vs Consenting
Table 4: Holding vs. Consenting
|
Series 003 |
Series 004 |
Series 005 |
|
|
Non-annualised Return (%) |
0.88 |
4.99 |
7.63 |
|
Extra Days Held to Next Call |
253 |
924 |
1358 |
|
‘Breakeven’ Annualised Return to Offset Forgone Cashflows (%) |
1.27 |
1.94 |
2.00 |
|
Current Yield-to-Worst (%) |
2.73 |
3.21 |
3.45 |
Our Recommendation
We recommend bondholders accept the Consent Solicitation. For Bond Express holders, we will accept the Consent Solicitation on your behalf before the Early Consent Date (16 September 2026) for the 0.50% Early Consent Fee.
The exercise allows STT to use cash generated from the sale of its remaining 82% stake in ST Telemedia Global Data Centres to redeem the outstanding securities early, rather than impose a haircut on bondholders. The two proposed amendments also appear reasonable.
Across all three series, the implied ‘breakeven’ annualised return from holding to the first call date (1.27% / 1.94% / 2.00% for Series 003 / 004 / 005) sits 127bps to 146bps below current Yield-to-Worst (2.73% / 3.21% / 3.45%). This implies a relatively low reinvestment hurdle for the offer to be considered attractive to existing bondholders.
Perpetual holders who approve these changes are entitled to a one-time fee of 0.50% of principal if they vote by 12:00 pm on 16 September 2026, or 0.25% of principal if they vote by 12:00 pm on 25 September 2026, providing an additional sweetener.
Given the fair terms, we expect the resolutions to pass. Non-voting or objecting bondholders will still be bound by the outcome if this happens but will not receive the consent fee.
Therefore, we recommend accepting the consent solicitation early. To qualify for the Early Consent Fee of 0.50% of principal (S$1,250 per S$250,000 holding), bondholders should vote in favour by 16 September 2026, 12:00pm Singapore time.
Declaration: For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) holds positions in SINTEC 4.200% Perpetual Corp (SGD). The analyst who produced this report holds NIL positions in the abovementioned securities. This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report – including all investment theses, ratings, price targets and conclusions – has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity.
