GE Capital has become the first foreign firm authorised to issue domestic currency bonds in Singapore, as the republic seeks to become a regional debt hub.
The S$300 million note issue, successfully launched yesterday, was also the firm's first Asia Pacific bond issue outside Hong Kong and Australia.
Jeffrey Werner, GE Capital's senior vice-president for treasury and global funding operations, said: 'Following our successful issue in Hong Kong in November 1998, we are returning to tap the Asian capital markets.
'Singapore is an important market for us, and we are delighted to be the first foreign corporate issuer since the government relaxed regulations on capital markets.' The Monetary Authority of Singapore (MAS) relaxed some of its stiff regulations on Singapore dollar usage last August, allowing foreigners not only to issue notes in the domestic currency but also to list them on the bourse.
This was part of a wider package of reform measures announced last year aimed at revitalising Singapore's debt market.
The World Bank's International Finance Corp was the first supranational to take advantage of the new rules last October with a well-received $300 million note issue, which has since been trading at 40 to 50 basis points above Singapore government security (SGS) yields.