Monthly Archives: April 2011

GLP to raise S$567 million

Posted on 26 Apr 2011 | Comments Off on GLP to raise S$567 million

Mainboard-listed Global Logistic Properties (GLP) is offering 3 billion yuan (S$567 million) in fixed rate notes under its newly established medium-term note programme, a move that boosts Singapore’s role as an offshore centre for the Chinese currency.

GLP said yesterday its first yuan-denominated note is an integral part of its plan to diversify its sources of funding. The company, which has logistics facilities in China and Japan, added that net proceeds from the yuan notes would be used for general corporate purposes.

Mr Jeffrey Schwartz, GLP’s deputy chairman, said: “The exponential growth in the offshore yuan market has provided us with an opportunity to tap an additional capital pool with growing significance in the region to enhance our financial flexibility.”

GLP chief executive officer Ming Z Mei, said that, as the company expands its China portfolio, income received in yuan will be better aligned with the company’s issuance of yuan-denominated notes.

“In addition, we believe the approval by People’s Bank of China (PBOC) in issuing such offshore debt is an endorsement of our effort in improving the overall logistics infrastructure of China, further expanding our network to support the growth of domestic consumption in China.”

Beijing’s desire to redenominate more of its trade in yuan is giving rise to a new offshore centre in Singapore. Singapore now has a 150 billion yuan swap line with the PBOC, while its trade with China is about 2 per cent of China’s total.

The yuan products market has been taking off in earnest in Singapore. The city-state’s big lenders, including DBS and OCBC, already offer such products to customers, forming a launching pad for an offshore market.

Barclays Capital and UOB Asset Management were the first to issue yuan bond funds in Singapore for retail investors. China’s biggest bank, ICBC, opened its first branch in Singapore in March, to promote the use of yuan in bilateral trade and investment between the two countries.

And last week, Monetary Authority of Singapore chairman Goh Chok Tong said that the PBOC would soon appoint a Chinese bank to clear yuan trades in Singapore.

The move would enable banks here to directly access onshore yuan, rather than having to route transactions via Hong Kong or banks on the mainland.

Source : Today – 26 Apr 2011

Comments Off on GLP to raise S$567 million

Posted in Funds

Tagged , , , , , , , ,

A wrong sense of housing affordability: NSP’s Goh

Posted on 26 Apr 2011 | Comments Off on A wrong sense of housing affordability: NSP’s Goh

Paying nothing as a deposit for a new flat or covering monthly mortgages with Central Provident Fund contributions do not mean public housing is affordable, the National Solidarity Party said yesterday.

At current housing prices, buyers will have to service their loans for the next 30 years, which will wipe out the CPF accounts of many buyers, leaving them with little for retirement, NSP secretary-general Goh Meng Seng said in response to recent comments by National Development Minister Mah Bow Tan.

Mr Mah had said on Sunday that eight in 10 couples who buy new flats use only a quarter or less of their salaries to service their home loans, because they use their CPF. Combined with housing grants, a couple earning $4,000 could get a flat with “zero deposit”, he had also said.

But Mr Goh said many young people he has met on the ground cannot afford flats, even with a 30-year mortgage: “A 30-year mortgage isn’t affordable. It would mean that all the youngsters now, in 30 years’ time, wouldn’t be able to retire; CPF would be zero. So what gives? Our future generation will suffer.

“To say that – not forking out cash for deposit – is a myth. It has created a wrong sense of affordability.”

His NSP team distributed flyers at the Tampines MRT Station last night. The NSP is contesting Tampines Group Representation Constituency, where Mr Mah is the People’s Action Party anchor minister.

Mr Goh also defended his proposal that permanent residents should have a longer minimum occupation period for HDB flats: Eight years, compared to five for Singaporeans. Mr Mah had rejected that proposal as housing policy was already “stacked in favour” of Singaporeans.

Mr Goh responded by saying there should be a mindset change with regard to PRs: “Whoever we want to attract, we should have the motive to make sure these PRs will become our citizens. We don’t want (PRs of) a migrant nature.” He believes that raising the criteria to eight years will elicit more commitment from PRs, as a flat will then become a home to them and “the natural path is to become a citizen”.

As for local issues NSP will campaign on, Mr Goh said Tampines has a number of problems, including an ageing population, lack of car park spaces and poor estate maintenance. Some ageing HDB blocks have leaking roofs and peeling paint, he said.

His proposals include a community hospital to serve the elderly in Tampines, Simei and Pasir Ris-Punggol.

Source : Today – 26 Apr 2011

Comments Off on A wrong sense of housing affordability: NSP’s Goh

Posted in General

Tagged , , , , , , ,