Singapore Technologies Engineering (ST Engineering) subsidiary, ST Engineering Financial I, has elected to redeem all of the outstanding US$500 million 4.80% notes due 2019 guaranteed by ST Engineering and issued under its US$1.2bn Multicurrency Medium Term note programme on July 16, 2018.
The recent rise in US Treasury yield has resulted in favourable conditions for the Group to redeem the notes. The Group’s capital employed will also be immediately reduced as a result of the early redemption. To fund future growth as the need arises, the group continues to be able to tap into financing with competitive terms in the prevailing environment.
This exercise is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.