Newly Issued Bond: City Developments Limited 5-year SGD Senior Unsecured Notes; FPG of 2.50%

City Developments Limited (CDL) is launching a new 5-year SGD senior unsecured bond at a final price guidance of 2.50%. Here is our take on the new issue.

iFAST Research Team
iFAST Research Team17 Jun 2026 62 Views
Newly Issued Bond: City Developments Limited 5-year SGD Senior Unsecured Notes; FPG of 2.50%

City Developments Limited (CDL) is one of Singapore's largest developers by market capitalisation. Majority-controlled by Hong Leong Group, CDL is one of Singapore's largest developers by market capitalisation. It is now launching a new Singapore dollar 5-year senior unsecured benchmark note at 2.50%, settling 26 June 2026 off its existing SGD 5 billion MTN programme. 


CDL’s revenue grew 9.7% year-on-year (YoY) to S$3.6 billion while net profit more than doubled to S$629.7 million (up from S$201.3 million in FY2024), driven by robust residential sales and major capital recycling gains. 


In its latest Q1 2026 update, CDL sold 242 units worth SGD 609.6 million, down from 795 units worth SGD 1.9 billion a year earlier, due to a lack of large-scale launches during the quarter. Sales momentum remains anchored by the luxury segment, with its newly launched Newport Residences already 78% sold to date at an average of about S$3,200 per square foot (psf). Hotels remained a bright spot, with global RevPAR rising 4.3% year-on-year to S$144.80 in Q1 2026.


As at 31 December 2025, CDL's total bonds and notes outstanding stood at S$3.5 billion at the group level, comprising S$2.4 billion in unsecured MTNs. Cash reserves stood at S$2.1 billion, and S$4.3 billion in total liquidity including undrawn committed credit facilities. Net gearing stood at 72% after factoring in the fair value of investment properties, reflecting new capital deployment into growth assets during the year. While the liquidity position is comfortable for near-term obligations, the elevated gearing is a key metric to watch over the life of these notes.


The interest cover ratio (ICR) as at Q1 2026 stands at 2.7x on a trailing 12-month basis, with a healthy debt expiry profile. This represents a recovery from the 1.4x trough at Q1 2025, when the Xintiandi acquisition debt was at peak draw. The moderation back to 2.7x in Q1 2026 is expected, given the lighter launch activity and absence of major one-off divestment gains in the quarter.


Looking at CDL's own existing bonds, this new 5-year note at 2.50% offers a slightly higher yield than what its older bonds are currently trading at. The two bonds maturing in August 2030 and December 2030 are currently priced to yield around 2.33%–2.36%. So relative to where CDL's debt already trades in the market, the new bond is offering investors an extra 14–17bps of yield pickup for taking on slightly longer duration, a reasonable step-up for one additional year of maturity.


Compared to similar bonds from other Singapore real estate players, CDL's 2.50% guidance sits in a reasonable middle ground. GuocoLand (GLL IHT Pte Ltd), which operates a highly competitive premium domestic portfolio, has its September 2029 senior bond trading at just 2.29%. On the other end, industrial S-REIT player ESR-REIT (EREIT), which carries a different risk profile and shorter duration out to February 2030, trades at 2.43%. CDL at 2.50% lands above both of those, which feels about right given its top-tier status as a diversified blue-chip developer, balanced by its strategic capital deployment.


Supported by a rock-solid Singapore real estate footprint and an S$4.3 billion liquidity buffer, CDL’s new bond offers a reasonable 2.50% coupon. Because the transaction has been finalised at this 2.50% final price guidance (FPG), investors should treat this as their exact hold-to-maturity return. We consider the issue to be fairly valued, and it offers an excellent risk-mitigated option for those seeking absolute safety, but it does not offer enough of a premium to be considered a standout buy. 


Issuer

Issue

Ask Price
(USD)

Years to Maturity

Yield to Worst
(%)

City Development Limited

CITSP 2.500% 26Jun2031 Corp (SGD) 

100.00

5.00

2.500

City Development Limited

CITSP 2.466% 29Aug2030 Corp (SGD)

100.541

4.20

2.330

City Development Limited

CITSP 2.400% 02Dec2030 Corp (SGD)

100.183

4.46

2.356

GLL IHT Pte Ltd 

GUOLSP 2.300% 25Sep2029 Corp (SGD)

100.033

3.28

2.289

ESR-REIT 

EREIT 4.050% 27Feb2030 Corp (SGD)

105.675

3.70

2.434


Disclosure: For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) holds a position in GUOLSP 3.290% 26Oct2026 Corp (SGD). The analyst who produced this report holds a NIL position in the abovementioned securities. This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report – including all investment theses, ratings, price targets and conclusions – has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity. 

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