ST Engineering announced on 14 June 2018 that its subsidiary, ST Engineering Financial I Ltd, has elected to redeem all of the outstanding US$500,000,000 4.80% Notes due 2019 (ISIN: XS0440041191) (Notes) guaranteed by ST Engineering and issued under its US$1.2b Multicurrency Medium Term Note Programme on 16 July 2018 (Redemption Date).
Please visit this link for the Notice of Redemption for more details of the redemption.
The redemption of the outstanding Notes immediately reduces the Group’s capital employed. The early redemption will also improve the Group’s EVA, cash flow and financial performance for the period from July 2018 to July 2019.
The recent rise in US Treasury yield has resulted in favourable conditions for the Group to redeem the Notes in accordance with the terms and conditions of the Notes.
No. We do not intend to terminate the MTN programme.
The Group continues to assess and review its liquidity needs against the best funding options available in the market including revolving credit facilities, short-term loans or issuance under the MTN Programme.
There is no validity period for the MTN programme. We can issue notes up to US$1.2 billion as long as the outstanding notes in aggregate do not exceed US$1.2 billion. The Notes are the only series of notes issued to-date.
The payment of the Make Whole Redemption Price shall be made to persons shown in the records of Euroclear and/or Clearstream, Luxembourg as holders of the Notes as at close of business (Central European Time) on 13 July 2018, being one business day prior to the Redemption Date.
The payment of interest from (and including) 16 January 2018 to (but excluding) 16 July 2018 shall be made to persons shown in the records of Euroclear and/or Clearstream, Luxembourg as holders of the Notes as at close of business (Central European Time) on 29 June 2018, being fifteen days prior to the Redemption Date.
ST Engineering will pay its paying agent, The Bank of New York Mellon, in US dollars on the Redemption Date, 16 July 2018. Persons shown in the records of Euroclear and/or Clearstream, Luxembourg as holders of the Notes should receive payment in the manner so agreed with Euroclear and/or Clearstream, Luxembourg.
Kindly contact the following representatives of The Bank of New York Mellon, our paying agent for the Notes, for more information. You may be required to provide evidence of your holding of the Note(s).
DID: +65 6432 0348
CHUA Pei Jen
DID: +65 6654 1036