Will I buy GSH Corp 3Y senior bond guided at 5.35%?

Depends ……

Today, there was a new issue of GSH senior bond. For those who is not aware, the major shareholder of GSH is “poppiah king” Sam Goi.

This is a bond that is very well designed. I would have bought it – if it can be supercharged (leveraged).

I really like the following clauses that is inbuilt into the bond:

  1. If Sam Goi and his immediate family members cease to own in aggregate at least 35% of the issued shares of GSH, this bond will be called back at par.
  2. If GSH shares is suspended > 10 consecutive working days, this bond can be redeemed at par.

These are great terms offered by a rich businessman for lending money to him. Gives added peace of mind.

Very unfortunately, it cannot be supercharged, so I will not be buying. If i have S$250,000, I would rather buy 3 lots of OUE 4.25% 2Y (supercharged) rather than 1 lot of GSH 5.x% 3Y.

  1. Higher net yield
  2. This OUE bond has call dates every 6 months that gives added protection price from falling
  3. Option to buy 1 lot ($80k) or 2 lots ($160k), rather than to commit $250k into 1 counter.
  4. Better credit quality
  5. Assets that I can touch and feel

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