PUB refinances bond one year ahead?

Based on this announcement, PUB issues $400million bonds in July 2010 to refinance a bond expiring Aug 2011.

It is not stated whether the 2011 bond was called. If it is not, PUB would be paying more than $12million interest ($400million x 3% = $12million) to get the fund available one year ahead of time. Quite expensive? Or PUB foresees the cost of fund to increase significantly over next one year?




http://business.asiaone.com/Business/News/Story/A1Story20100712-226601.html

PUB launches issuance of $400 million fixed rate bonds


Mon, Jul 12, 2010
AsiaOne


PUB, Singapore's national water agency, has launched the new issuance of $400 million 12-year fixed rate bonds.

The issue date for the 12-year bonds, which has a coupon rate of 3.012% per annum payable semi-annually in arrear, is July 12, 2010.

These are issued in denominations of $250,000 and offered to investors pursuant to exemptions under Sections 274 and/or 275 of the Securities and Futures Act, Chapter 289 of Singapore.


DBS Bank Ltd will serve as the lead manager for the bonds, whose approval-in-principle has been granted on July 7 by the Singapore Exchange Securities Trading Limited for the listing and quotation of the 12-year bonds on the SGX-ST.

Proceeds from the issue of the 12-year bonds will be used to refinance the bonds of PUB that are maturing in August 2011.