:: Singapore Investment Banking Association

DEBT CAPITAL MARKETS

Summary of activities during year to October 2009

DIALOGUE SESSIONS WITH THE MAS

The Debt Capital Markets Committee meets on a regular basis throughout the year to discuss industry issues. At these sessions, MAS representatives are also present as invited attendees. Through this forum, there is dialogue with MAS to provide industry feedback and to discuss and explore areas of market development and promotion.

SIBA requested MAS to consider certain high grade assets as repo facility. This will broaden the repo markets and improves secondary market liquidity for these bonds. In response to industry request, MAS will accept AAA-rated SGD debt securities issued by sovereigns, supranationals and sovereign-backed corporates as collateral in the Standing Facility in addition to SGS.



ISSUANCE OF BONDS/NOTES – DOCURMENTATION AND TIMING

The CDP issued a revised set of guidelines on 30 September 2008 for the documentation and timing involving the issuance of bonds and notes. SIBA responded to CDP on how the procedures could be fine-tuned to facilitate bond issuances and settlements on October 2008. CDP attended a session of Debt Capital Markets Committee meeting in March 2008 and clarified the procedures and also provided SIBA with the template for bond issuance and documentation requirements in May 2009. The template is now posted on the SIBA website (Pls attached template)


SIBA-MIBA DIALOGUE – AUGUST 2009

The annual meeting of debt capital market professionals was hosted by MIBA at the Le Meridien, Kuala Lumpur on August 2009. The SIBA dialogue was chaired by Mr Kenneth Yeoh, Chairperson of SIBA Debt Capital Markets Committee while the MIBA dialogue was chaired by Mr Seohan Soo of MIBA Debt Capital Markets Committee.

There was a lively exchange of information on the impact of the financial crisis on the respective markets and issuance of local bonds by the foreign issuers.

In Singapore, a surprising turn in the bond market with more issuers raising funds in the second quarter of this year as compared to the first quarter.

Foreign issuers have been tapping the Malaysian debt capital markets and driving up spread. They include Korea, India, Australia and Singapore. Korean issuers had been given good local rating of AAA as compared to international rating of a single A.

Other topics discussed included the:
• Developments on the retail bond market
• Cross border issues
• Default of bond issue as a result of financial crisis
• Islamic Capital markets
• Documentation and execution of bond issuance for foreign issuers
• ASEAN and Plus Standards Scheme for multi-jurisdiction offerings of securities in ASEAN
• Rating of bond issuance
• Availability of funding in the current bond market