10 April 2012

Gentings Perpetual Subordinated Capital Securities @ 5.125% + 1% (after 2022)

Ah, finally, another opportunity! 

Gentings is offering Perpetual Bonds at a rate of 5.125%.  After 10 years (18 Oct 2022), if not redeemed, the rate increases to 6.125% thereafter.  The perpetual bond is recallable/reedemable in 2017 (5 years).  Minimum subscription to its IPO is $5,000, and in increments of $1,000.  Distribution is twice yearly on 18 Apr and 18 Oct.

There are many risks involved and one should check out the prospectus in detail.  From my perspective, it sounds like a reasonable deal, so long as Gentings doesn't fold over the next 20 years.  Would have been even better if the rates were higher!  One can only wish.