NetLink meets an­a­lysts ahead of S$2b IPO

New Straits Times - - Business / World -

its pol­icy state­ment were merely guide­lines.

“The amount of our bond pur­chases may vary de­pend­ing on fi­nan­cial mar­ket con­di­tions at the time. But this has no im­pli­ca­tions on mone­tary pol­icy go­ing for­ward.”

Kuroda said eco­nomic re­cov­ery in Ja­pan was tak­ing hold more firmly but warned that over­seas de­vel­op­ments, such as un­cer­tainty over the United States eco­nomic poli­cies, re­mained the big­gest risks to its out­look.

“While global eco­nomic growth is gain­ing mo­men­tum, var­i­ous uncer­tain­ties re­main” that could weigh on Ja­panese con­sumer and cor­po­rate sen­ti­ment, he said.

The gov­ern­ment and the BoJ must work to­gether to seek an ap­pro­pri­ate mix of fis­cal and mone­tary pol­icy mea­sures to ensure the re­cov­ery was sus­tained, said Kuroda.

But he added that it was “un­nec­es­sary and in­ap­pro­pri­ate” for the BoJ to bankroll gov­ern­ment debt and di­rectly fi­nance fis­cal spend­ing, an idea pro­posed by some aca­demics who call for more rad­i­cal mea­sures to re­flate Ja­pan’s econ­omy.

At its most re­cent meet­ing on April 26-27, the BoJ main­tained its short-term in­ter­est rate tar­get at mi­nus 0.1 per cent and a pledge to guide 10-year gov­ern­ment bond yields around zero per cent.

It also main­tained a loose pledge to buy gov­ern­ment bonds at a rate that would in­crease its hold­ings by 80 tril­lion yen a year. Reuters SIN­GA­PORE: NetLink Trust, the fi­bre broad­band net­work provider backed by Sin­ga­pore’s big­gest phone firm, started brief­ing an­a­lysts this week ahead of an ini­tial pub­lic of­fer­ing (IPO) that could raise at least S$2 bil­lion (RM6.08 bil­lion), said peo­ple with knowl­edge of the mat­ter.

The arm of Sin­ga­pore Telecom­mu­ni­ca­tions be­gan meet­ing re­search an­a­lysts to ex­plain its busi­ness model, which would later be fol­lowed by meet­ings with po­ten­tial in­vestors, they said.

NetLink, which an­nounced on Mon­day the gov­ern­ment had cut most of its prices, had been dis­cussing a po­ten­tial an­nual div­i­dend yield of about four to five per cent, said the peo­ple.

Terms of the of­fer­ing had not been set yet and NetLink was tar­get­ing to com­plete the IPO by July, they said.

At S$2 bil­lion, the IPO would be the big­gest here since Hutchi­son Port Hold­ings Trust’s March 2011 of­fer­ing, ac­cord­ing to data.

First-time share sales in Sin­ga­pore had raised S$225 mil­lion so far this year, data show. Bloomberg

BLOOMBERG PIC

Bank of Ja­pan (BoJ) gov­er­nor Haruhiko Kuroda says it is very im­por­tant to ex­plain in easy-to-un­der­stand terms how mone­tary pol­icy could af­fect the bank’s fi­nan­cial health.

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