Dear readers, Astrea 7 bonds is coming soon! And investors would like to know what is the interest rate of Astrea 7 bonds?
Well as announced yesterday, Temasek Holdings’ Azalea Asset Management is launching a new series of bonds called Astrea 7 backed by 38 private equity funds with an indicative total size of US$755 million.
There will be 3 classes of bonds, A-1,A-2 and B under Astrea 7:
Class A-1 bonds: will be made available to investors, indicative size S$462 million with S$277 million for public offer and the rest to placement for institutions and other investors. Mandatory call after 5 years in 2027 and legal maturity of 10 years in 2032.
Class A-2 bonds: will not be made available to investors, indicative size is US$220 million. Mandatory call after 5 years in 2027 and legal maturity of 10 years in 2032.
Class B bonds: rank junior to Class A-1, Class A-2 bonds in terms of payment priority and an indicative size of US$200 million with half to be offered to public and the other half to placement for institutions and other investors. There will be a scheduled call in May 2028 years and legal maturity of 10 years in 2032.
I believe the upcoming Astrea 7 bonds is good news for retail investors and savers who will have even more choice when it comes to making their monies work even harder for them. However, my understanding is that interest rates of Astrea 7 Bonds are yet to be decided. So, for those investors considering whether to invest in the Jun 2022 Singapore Savings Bonds (with a 2.53% per annum interest rate over 10 years) or the Astrea 7 bonds, they may need to wait a little while more for details of the interest rates of Astrea 7 bonds to be announced.
For those interested in Astrea 7 bonds, here are the key details:
19 May 22, 0900 hrs: issue to open for applications
25 May 22, 1200 hrs: close of application
Minimum retail application: S$2,000
Trading on SGX: 30 May 22, 0900 hrs
Have a Good weekends ahead!