Dear readers, the recent offer from Temasek Holdings, T2026 Temasek Bond was over-subscribed such that Temasek Holdings has even upsized the bond offered.
I have taken a look at the allocation of the T2026 bond via SGX_Allocation_Announcement_23Nov2021.ashx. For applicants who applied for bonds of S$13,000 and less, the applicants each obtained the full amount of bonds they applied. For applicants for bonds of above S$13,000, each applicant received a partial allocation.
For applications from S$1 million to S$1.67 million, each applicant received S$105,000 in allotment.
At 1.8% annual return, an applicant who subscribed for a S$1 million bond may be interested to receive S$18,000 in return annually or S$1,500 per month, which to me is a very decent passive income, generally risk free.
But now that the actual T2026 Temasek Bond to an applicant for a S$1 million bond has gone down to S$105,000, the applicant will actually be getting S$1,890 return annually or S$157.5 per month, which is approximately 10% of what a fully allocation could achieve,
Thus, I am not sure whether for applicants applying S$1 million to S$1.67 million of the T2026 bond, will these applicants rather not obtain the partial allotments, have they known that they will be getting an approximate 10% allocation rate?
What about yourself? If you are going into a subscription exercise, will you prefer to give up your subscription if you are only partially allocated the shares or bonds?
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
BINGE READ ALL POSTS!
Visit Home Page for more reads or Connect here!