Posts
In 2011, I wished all Hyflux investors good luck.
Now, 2018, again, I wish them good luck because they need it more now than ever.
I have always been concerned by how Hyflux kept borrowing money (and why their cost of borrowing was always relatively high in an environment of very low interest rates).
I also said that I would not lend Hyflux any money.
 |
| Chat with a reader in Nov 2017. |
I just hope that they did not put all their eggs in the same basket.
A retiree wanted more updates on the divestment of the plant and what that means when the 4.25 per cent bonds that he had invested S$250,000 into mature this September.
“There isn’t a conclusion and everything still hinges on the sale of Tuaspring and at what price. But my investment is due in September and that’s what I’m most concerned about,” he told Channel NewsAsia.
“I’m retired so this was going to be a key part of my income but now, not just the income, I have to be worried about my capital. My kids are going to university soon so I have to figure another way out.”
Source:
https://www.channelnewsasia.com/news/business/hyflux-shareholders-townhall-meet-management-first-time-10545662
----------
It was not so long ago that Hyflux offered $200 million of perpetual preference shares.
At that time, I wondered why Hyflux had to pay a 6% annual dividend yield on those shares.
6% seemed a tad expensive to me in an environment where interest rates are very low.
I concluded that Hyflux could be having some difficulty getting long term financing from financial institutions at even an interest rate of 6% per annum.
Now, Hyflux has approached a group of banks for a $800 million bridge loan.
Bridge loans are usually short term in nature (i.e. not more than a year) and are usually perceived as lower risk and would attract a lower interest rate.
There is no question that Hyflux is a growth company and one with huge capital expenditure requirements.
It could turn out very nicely for shareholders if its business chugs along as planned.
Good luck to all shareholders.
-->
Hyflux said to approach banks for $800m bridge loan
Wednesday, 01 June 2011
Related post:
© 2011 - The Edge Singapore
Hyflux director divested all his shares!
Bloggy Award
3 comments:
Fishy Business. Borrow money here borrow money there.
Borrow A to pay to B? Ponzi scheme? Stay far far away.
Hi so1trg,
I don't know if the business is fishy but it is most certainly capital intensive.
Investors must do thorough due diligence and perhaps be extra cautious here. :)
Koh Kai Xiang says...
Yesterday I saw ntuc staff selling hyflux brand water filter (attached to water tap). We asked what happen if hyflux close down; then the filter no other source to buy from? Sales person say don’t worry wouldn’t close down one; the subsidiary is separate from the parent company. 😂
AK says...
What you expect salesman to say?
You trying to break his ricebowl? :p
Koh Kai Xiang says...
the salesperson did say that “a lot of people asked me the same thing”.
Post a Comment