“In addition, an initial $600m equity injection is manageable as we expect Singtel to maintain its dividend mandate,” UOBKH analyst Chong Lee Len writes in a note dated Dec 7.
Singapore Telecommunications (Singtel) is expected to maintain its dividend mandate after the company – through a consortium with Grab Holdings – secured a digital full banking licence, according to UOB KayHian.
The brokerage says it sees “little earnings impact” in the near term and assumes the digital bank under the Grab-Singtel consortium will take four-to-five years to break even.
