Keppel share price: S$250 million worth of 5-year notes priced at 2.25% p.a.
A series of investor announcements were made this week, starting with the price reveal of a new batch of securities.
Several announcements came out of Singapore offshore, marine and property group Keppel Corporation's investor relations office this week.
Keppel prices five-year notes at 2.25% fixed interest rate
On Monday 13 April 2020, the company announced the price of S$250 million worth of five-year notes at a fixed interest rate of 2.25% per annum.
Keppel plans to issue the securities – payable semi-annually in arrear – ‘on or around’ 20 April 2020. The notes are expected to be listed on the Singapore Exchange (SGX) on or about the following business day after they have been issued.
According to the press release, net proceeds from the issued notes will be used by the company for general corporate or working capital purposes, including refinancing of existing loans.
Following this announcement, Keppel’s shares closed the day 1.23% lower at S$5.62 per share.
IG is a world-leading online trading and investments provider for thousands of financial markets. With CFDs, you can buy long or sell short on Keppel Corp shares depending on whether you think prices will rise or fall. Start today by opening an account on IG's market-leading trading platform.
Floatel updates; new S$10 million marine energy partnership
The next day – on 14 April 2020, the group provided an update on the financial status of its debt-ridden subsidiary Floatel, in which it has a S$477 million stake.
Keppel revealed that the Swedish oil production platform vessel operator’s negotiations with creditors and lenders to finance its debts were still in a ‘standstill’.
Finally, on Wednesday 15 April 2020, Keppel Offshore & Marine and the Energy Market Authority entered into a S$10 million partnership to develop innovative energy marine solutions in the areas of distributed energy resources, digitalisation and emerging low carbon alternatives.
Following these two announcements, Keppel’s stocks had dipped 1.68% to S$5.57 per share to finish Wednesday’s session, based on IG trading data.
Are you bullish or bearish on Keppel Corp? Either way, you can buy long or sell short on Keppel shares and other Singapore stocks using CFDs and other instruments offered on IG's world-leading trading platform. Start today by opening an IG account.
UOB lowers 12-month share price target for Keppel Corp
In a note posted on 08 April, UOB analyst Adrian Loh had given a ‘buy’ rating on Keppel Corp stocks alongside a lower 12-month price target of S$7.20 per share (from S$7.75 previously).
He wrote that there is room for further upside for the company’s share price as stocks are currently trading at 22% below then-offer levels, which he views as an excessive discount.
He further noted that the company has been executing its strategic plans well prior to Temasek’s partial offer to acquire an additional 31% of Keppel shares at S$7.35 each, which is still in the process of receiving global regulatory approvals.
To this end, he pointed out that Keppel has been ‘investing heavily into new areas (telecommunications and asset management), while its offshore & marine unit has made good headway in targeting new clients in the offshore renewable space’.
Loh also foresees a ‘decent’ growth outlook for the company this year, citing Keppel’s 2019 financial results, which showed that with the exception of a slight decline in its property segment, all other business units saw year-on-year operating profit growth.
‘In our view, the company’s growth outlook is likely to be robust this year with demand continuing at healthy levels for its China properties, its offshore marine segment looking to increase headcount due to higher business activity, and the Keppel Marina East Desalination Plant coming close to completion and scheduled to commence operations in 1H20,’ he wrote.
With CFDs, you can buy long or sell short on Keppel Corporation shares and other Singapore stocks depending on whether you think prices will rise or fall. Start today by opening an account on IG's market-leading trading platform.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets