Hyflux: $800 million bridge loan (UPDATED JULY 2018).

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.

Being a retiree, I feel sorry for the retirees who put in a lot of their money in Hyflux.

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






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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.






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Hyflux said to approach banks for $800m bridge loan Wednesday, 01 June 2011

© 2011 - The Edge Singapore

Related post: 
Hyflux director divested all his shares!