If you’re an income investor, you’re likely very interested in the Astrea 8 bond, and the allocation has finally been concluded. Here’s a quick update on the latest developments.
What Are Astrea 8 PE Bonds?
Astrea 8 PE Bonds are Private Equity Bonds issued by Azalea Asset Management, which is indirectly owned by Temasek Holdings. These bonds are backed by cash flows from a portfolio of private equity funds. For a detailed write-up on this tranche of Astrea 8 Bonds, check out my previous article here.
Additional Reading: Is Astrea 8 IPO Worth Investing? An In-Depth Look at Singapore’s Latest Retail PE Bonds
In a nutshell, Astrea bonds have a strong track record and credit quality, making them one of the most popular bonds in Singapore.
After all, there are very limited options available to retail investors in Singapore. Most bonds typically demand a minimum subscription amount of $250,000 or USD 200,000. iFast and Great Eastern issued two lower denomination bonds recently, even though these require investors to be Accredited Investors to participate.
Astrea 8 Bond Subscription and Balloting Result
As I mentioned in my earlier article, you could subscribe to Astrea 8 bonds through Private Placement or Public Offer. Since Astrea V was just fully called back by the issuer, the enthusiasm for the Astrea 8 bonds was not surprising.
Here are some key points:
The overall subscription for Astrea 8 PE Bonds was 2.8 times the US$585 million offered.Public Offers for both classes received over S$1 billion in total subscriptions, making it 3.1 times oversubscribed.The subscription rate for Class A-1 Bonds (in SGD) was about 2.9 times, and for Class A-2 Bonds (in USD), it was about 3.9 times.More than 76% of the Public Offer bonds were allocated to applicants who applied for less than S$50,000 (Class A-1) or US$50,000 (Class A-2).
The detailed balloting results are shown