Astrea IV PE Bond
Astrea IV private equity bond issued by Astrea IV Pte Ltd has a coupon rate (interest) of 4.35% per annum up to 5 years non-call period. It has maturity of 10 years if the bond is not called after 5 years with step-up interest of 1% add on to 4.35% p.a.
(There are a lot details on this retail bond backed by cash flows from a portfolio of private equity funds. Read the prospectus for details on rewards and risks of this investment.)
Astrea IV PE bond (Class A-1) will be listed on the main board of SGX-ST for trading. Value of this bond will be quoted in the Singapore Exchange.
Astrea IV PE bond has an indirect link to Temasek Holdings (Private) Limited. Astrea IV Pte Ltd is indirectly wholly owned through a structure back to Temasek Holdings.
Public offer closes on 12 June 2018 12 pm.
Singapore Savings Bonds (GX18070N)
After three rounds of oversubscriptions since April 2018 (Apr to Jun), SSB had been in favour with investors. The quantity ceiling allotted amount was $12,000 for the last issue (June).
“This Savings Bond was allotted using the Quantity Ceiling format. Applicants who applied for SGD 12,000 or lower were fully allotted, subject to the individual allotment limits. Applicants who applied for SGD 12,500 or higher were allotted either SGD 12,000 or SGD 12,500. Approximately 18.99% of these applicants were selected at random and allotted the additional SGD 500.” (Source: MAS public notice)
For July SSB (GX18070N), the average return per year (when held to 10 years) is 2.63%. Incidentally, this interest rate was similar to the SSB first launched in October 2015 (though not the highest).
Application closes 9 pm 26 June 2018.
I expect both bonds will find many investors interested. The higher coupon (interest) rate for Astrea IV PE bond of 4.35% p.a. compared with Singapore Savings Bonds of 2.63% p.a. is due to the risk level of PE bond when compared with SSB.
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