Singapore\'s first high-yield bonds

Notes sold by MMI International, Singapore\'s first high-yield bond in more than a year, rose in the first two days of trading, according to UBS AG prices and data compiled by Bloomberg. The computer disk-drive maker\'s $300 million (Dh1.1 billion) of notes, which mature in March 2017 and were sold at par on February 17, pay investors a coupon of eight per cent and were trading at 102 cents on the dollar yesterday in Hong Kong, the data show. \"A high-yield bond would suit a company well if it needs more financial flexibility and requires an extension of its debt-maturity profile,\" Hong Kong-based Luke Garner, co-head of JPMorgan Chase\'s Asia high-yield capital markets unit, said by phone yesterday. Shermin Fock, a Singapore-based finance director at MMI, declined to comment on the sale when contacted at her offices on Monday. The last Singapore-based company to issue a high-yield security was Stats ChipPAC, which sold $200 million of 5.375 per cent bonds due in March 2016 in January last year, the data show. JPMorgan was hired to arrange MMI\'s sale, along with Credit Suisse AG and UBS, according to data compiled by Bloomberg. Moody\'s Investors Service said on February 17 it would probably rate the notes Ba3, the third-highest speculative grade. Investors based in the US bought 79 per cent of the offering, with the remaining 21 per cent allocated to accounts in Asia and Europe, the person familiar with the matter said yesterday, asking not to be identified as the details are private.