19-04-2011, 07:49 PM
There is no maturity date for preference shares and neither is there any conversion. After 2018, the interest rate will step up to 8%. If the proposed planned expansion into China is a success, I don't think an incremental 2% base point increase in interest rates (or approx extra $4 mil) will hurt Hyflux badly. Alternatively, it can always roll over the pref shares by issuing new ones.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.