A local market deal has been formalized and was launched this morning. The deal was Tata Steel's ten year Reg S Singapore dollar denominated bond at 5.25%.

The issue would be at benchmark size for the Singapore exchange, which is anywhere between SG$250 million and SG$ 400 million. Speculation abound that Tata Steel would be increasing the volume to between SG$500 million and SG$600 million.

Many leads are utilizing Singaporean dollar denominated bonds with Indian issuers as comps. Examples of these are Tata Communications' 2016 bonds at 4.25% due are now selling at 101.40 or a 3.71% yield. Another sample is ICICI that are due on 2020 with 3.65% are no being traded at 100.35 with 3.59%. A third sample is IOC's 2022 issue at 4.1% are now at 101.30 with 4.06%.

Private financial institutions are being offered a 25 cent rebate for taking them on but the demand still comes from Indian onshore accounts. The issuer is ABJA Investment Co and the notes would be carrying a guarantee from Tata Steel. The ratings are at Ba3/BB/BB+ with negative outlook.