Koh Eng Bond is a term created by Singaporean market players to name two private bonds that are gaining popularity in the Singapore market due to the impact of the default case of Evergrande, the second largest property company in China. So Koh Eng Bond is not the name of a bond, but rather a term that refers to two bonds issued by two private property companies in Singapore, namely Koh Brothers Group Ltd and Chip Eng Seng Corp Ltd.
The two companies issued their bonds in 2017 with the following data:
- Koh Brothers Group Ltd, issued bonds worth SGD 70 million on 19 October 2017 with a fixed rate scheme and maturity on 27 October 2022. Interest coupon is 5.1% per year with interest coupon payment frequency every 6 months.
- Chip Eng Seng Corp Ltd, issued bonds worth SGD 15 million on 19 May 2017 with a fixed rate scheme and maturity (maturity) 19 May 2022. Interest coupon is 4.9% per year with interest coupon payment frequency every 6 months.
Both of them are not retail bonds because they both sell their bonds with a minimum investment of 250 thousand SGD. Only fund managers and institutional investment managers invest in these two bonds. In addition, the two bonds are considered high risk for the size of the Singapore market because the benchmark interest rate in Singapore is below 1% per year on average.
There’s really nothing strange about this Koh Eng Bond. A bond with high risk and high yield, and is a private bond that only institutional investors buy. But indeed Koh Eng Bond became popular when the Evergrande case occurred some time ago.
Evergrande’s default made many market players look for other alternatives to invest in the property sector. One of the targets of these investors is Singapore, where property bonds are performing well, especially the Koh Eng Bond.
If you look at the term above, we already know that it is related to bonds or debt securities. Debt securities or bonds are securities based on debt issued by an institution or organization. So dimplenya if there is an institution that requires funding, the institution can issue bonds for the needs of the debt. If you look at the bonds themselves, there are many types if they are sorted according to which sector the institution is located. There are those from the government where the government issues debt securities for the financing needs of the government’s operations or there are bonds that come from the private sector which usually comes from various sectors ranging from the financial sector to the property sector.
Koh eng Bond itself is a bond issued by a private company engaged in the property sector. So this koh eng bond actually comes from two property companies in Singapore. These companies are named Koh Brothers Group Ltd and Chip Eng Seng Corp Ltd, respectively, where the two companies are companies in charge of property development in private countries, each of which is like issuing debt securities to finance the needs of the two companies.
Some time ago these two bonds were often mentioned because there was a big case that had nothing to do with the two bonds or it was caused by the Evergrande company in China. Actually, these two bonds are normal, but as usual in the financial world, gossip will soon spread to enliven the news in it. The two bonds will actually mature this year or 2022 and it will determine whether the two companies that issue the bonds will pay or not.
Koh Eng Bond is a designation or another name for domestic bond products issued by a Singaporean company that uses a business flag called Koh Brothers Group Limited and Chip Eng Seng Corp Limited where the two business giants are listed on the Singapore Stock Exchange or the Singapore Exchange Limited-Securities. Trading (SGX-ST) since 1994 and exists until now. One of the bonds issued by Koh Brother Group Limited is Domestic bonds series SG6RG200004
It can be further explained that the mention of Koh Eng Bond is not the official name. Bonds issued by the two companies are traded on the Singapore stock exchange, but instead become an informal designation but are quite popular among investors and financial market players in Singapore and globally which are a combination of the names of the founders. the two companies, namely Mr. Koh and Mr. Eng with their respective business flags.
The two business groups have become one of the most highly regarded business companies in Singapore and the surrounding area because they have a fairly large market capitalization value and are very attractive to investors because of the prospect of stock growth which continues to show a positive trend in addition to the issuance of bond instruments that continue to show good performance. and its good for Systematic Investment Plan which was quite better in the Singapore capital market, although it was affected by the fall of the Chinese property giant Evergrand Group, which had failed to pay, but in general the two business groups from Singapore have a fairly strong fundamental foundation.
Koh Brother Group Limited is an investment holding company engaged in the construction and development of real estate including the manufacture of concrete products and building materials, hotel management and management, and selling and leasing of construction equipment. In addition, the Koh Brothers Group Limited company carries out distribution activities, makes designs and designs and produces equipment products for the oil and gas industry.
Koh Brother Group Limited was founded by Koh Tiat Meng and has been operating since 1966. Currently there are 40 subsidiaries, joint venture companies and associated companies spread across Singapore, China, Malaysia and Indonesia which are incorporated under the Koh Brother Group banner including the Koh Brothers Building. Technologies currently investing in Batam, the Riau Archipelago province of Indonesia.
Meanwhile, Chip Eng Seng Corporation Ltd is a multinational conglomerate company whose business is in construction, civil infrastructure, precast technology, property development and investment, hospitality, and education. The group was founded by Lim Tiam Seng since the 1960s.
