Weak dollar attracts Singapore borrowers offshore

Singapore borrowers are gearing up to take advantage of attractive funding levels in the dollar market, and banks are circling to win the mandates. Companies such as SembCorp Marine, Singapore Airlines, Singapore Telecommunications, Wilmar and DBS are all considering dollar bonds.

“Singapore companies are checking out the dollar market and asking for quotes,” said one debt capital markets banker. “It is a good time to lock in rates and term out debt. But the Singapore dollar bond market offers cheap funding, so the pricing in the dollar market would have to be very compelling,” he added.

So far this year, Singapore borrowers have been relatively quiet...