SingTel – Lim and Tan

• Sing Tel has priced its US$600 mln 10.5-year note issue to give a yield of 4.5%. The issue was more than 3 times subscribed.

• Investors will have a “little” hard time whether to swap shares for the bonds, given the stock yields about 4.9% (based on unchanged final of 8 cents for ye Mar 2011, plus the 6.8 cents interim already paid).

• Our main grouse with sing Tel remains the board / management’s reluctance to commit to a dividend policy, however understanding investors may be that a good part of Sing Tel’s group profit represents

associates contributions, which do not necessarily translate to dividends / cash flow to Sing Tel.