Anatomy of a Deal: Frasers bond turns heads

Frasers Centrepoint plans to return to the dollar bond market in the future, after being encouraged by its $200m debut last week. But some bankers were left scratching their heads by the company’s aggressive pricing.

Frasers Centrepoint raised $200m from a five-year bond on Tuesday. After building demand on a two-day roadshow in Hong Kong and Singapore, the Singapore-based property company managed to get away with a coupon of just 2.50%. That was equivalent to 175bp over Treasuries.

The after-swap price was below what the company would have paid to raise funds in the Singapore dollar market. Indeed, it was so far below that one DCM banker...