Because we’re now getting very low loan rates overseas, we expect Astrea VI to be much hotter than prior editions.
So here’s what you need to know/prepare if you want to acquire Astrea VI bonds during the IPO:
You’ll need a CDP account linked to a DBS/POSB, OCBC, or UOB bank account.
Theoretically, there is no limit to how much you can invest. We propose applying for a $50,000 investment – you’ll either get the full amount or a portion of it (if the bond is oversubscribed and there aren’t enough to go around).
If you apply for more than $50,000, you’ll be put through a poll similar to the HDB BTO balloting. Only a few people were chosen “Bonds will be given to the “winners.” As a result, there’s a chance you’ll be completely rejected.
Have you not received the entire amount you expected? It’s fine; when Astrea bonds are listed on SGX on March 19, 2021, you’ll be able to buy and sell them. However, because it’s on the internet, “The price can grow or fall on a “open market.”
Is Astrea vi a good investment?
Investors can diversify their portfolios by purchasing Astrea VI bonds. Bonds are a useful portfolio stabilizer since they have minimal risk and little payouts. This can give an excellent counterbalance to higher-risk asset groups in your portfolio, such as equities, exchange-traded funds (ETFs), and cryptocurrencies.
Astrea VI bonds also give retail investors access to private equity, an investment type that isn’t easily accessible to them. Private equity is usually reserved for the big guns, such as accredited or institutional investors who have a significant investment portfolio.
With the prior Astrea bonds proving to be quite popular among individual investors, there’s little question that this new offering will be as well. Before applying for Astrea VI PE bonds, investors should be aware of the following eight facts.
Is Astrea Bond a secure investment?
The Astrea VI PE Bonds’ Class A-1 Bonds have the highest repayment priority. As a result, it is the safest bond tranche. If you are an accredited investor, you can buy Class A-2 and Class B bonds.
What do Astrea bonds entail?
Make a Future Investment. The Astrea VI PE Bonds are Singapore’s third listed retail bond backed by private equity fund cash flows. They are the sixth series on the Astrea Platform, and they are another step toward bringing listed retail bonds to Singapore investors.
In 2021, how do I obtain Temasek bonds?
- The full allocation was given to all candidates who applied for S$13,000 or less (44 percent of applicants).
- Applicants that filed for less than S$50,000 received more than half of the Final Public Offer Size (76 percent of applicants)
- On Thursday, November 25, 2021, bonds are slated to begin trading on the SGX-ST at 9 a.m.
Temasek Holdings (Private) Limited (âTemasekâ) refers to the announcement dated 15 November 2021 regarding the offer of the 5-year T2026-S$ Temasek Bond, which will be issued through its wholly-owned subsidiary Temasek Financial (IV) Private Limited (the âIssuerâ) and will consist of up to S$350 million 1.8 percent guaranteed notes due 2026 (subject to the Upsize Option).
If the Public Offer and/or Placement are oversubscribed, the Issuer and Temasek may exercise the Upsize Option to increase the Total Offering up to S$500 million and determine the final allocation between the Public Offer and Placement, subject to compliance with the Allocation Condition, as stated in the announcement dated 15 November 2021.
The Issuer and Temasek have decided to exercise the Upsize Option to expand the Public Offer Size by S$150 million due to strong demand from retail investors. This is to ensure that all qualifying Public Offer submissions receive some funding.
As a result, the T2026-S$ Temasek Bond’s aggregate principal amount of S$500 million under the Total Offering has been allocated as follows:
(b) Bonds with a total principal amount of S$250 million will be offered in the final public offering.
Based on the Final Placement Size of S$250 million, the S$1,542,500,000 in bids received under the Placement represent a subscription rate of nearly 6.2 times.
Valid applications submitted at the closing of the Public Offer totaled S$649,506,000, according to the notification dated November 22, 2021. Valid applications received under the Public Offer should instead total S$649,368,000 after further verification. This is around 2.6 times the Final Public Offer Size of S$250 million, or 6.5 times the initial Public Offer Size of S$100 million.
All applicants who submitted legitimate applications during the Public Offer were given all or a portion of the bonds they requested.
Any applicant whose Public Offer bond application was invalid or who did not get the full allocation for which they applied would have their application amounts or balance (as applicable, excluding any non-refundable application or administrative charge) repaid without interest. This will be accomplished by crediting his or her bank account with DBS, POSB, OCBC, or UOB within 24 hours of the Public Offer bonds being allocated.
Appendix A shows the allocation outcomes of the Public Offer and the Placement.
On Wednesday, November 24, 2021, the T2026-S$ Temasek Bond is likely to be released.
From Wednesday, November 24, 2021, retail investors can verify their allocations by entering into their CDP accounts.
The T2026-S$ Temasek Bond is expected to begin trading on the SGX-ST Main Board at 9 a.m. on Thursday, November 25, 2021, assuming the SGX-ST is satisfied that all conditions for the start of trading in the bonds have been met.
Temasek 1.8 percent 261124XB# will be the trading name for the T2026-S$ Temasek Bond, which will be traded on the SGX-Main ST’s Board.
This release does not constitute an offer to sell securities in the United States. The Securities Act of 1933, as amended, prohibits the offering or sale of securities in the United States without registration or an exemption from registration. There is no part of the planned offering that will be registered in the United States, and no offering will be undertaken in the United States. The T2026-S$ Temasek Bond may not be offered or sold in the United States, or to, or for the account or benefit of, residents of the United States.
This announcement is solely addressed at people who are âqualified investorsâ within the sense of Article 2(e) of the Prospectus Regulation (EU 2017/1129) as amended (the âProspectus Regulationâ) in the European Economic Area (the âEEAâ).
This announcement is only directed at âqualified investorsâ in the United Kingdom (âUKâ), as defined by Article 2(e) of the Prospectus Regulation, which is part of domestic law in the UK by virtue of the European Union (Withdrawal) Act 2018, as amended, who are also persons I who have professional experience in matters relating to investments as defined by Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. This announcement should not be acted upon or relied upon by non-relevant individuals. Any investment or investment activity mentioned in this announcement is only available to relevant people and will only be done with relevant people.
There is no key information document for PRIIPs or the United Kingdom. Because the offering is not available to retail investors in the EEA or the UK, a PRIIPs essential information sheet has been developed.
The following is the breakdown of successful applicants for the S$250 million Placement:
What is the procedure for purchasing a Temasek bond?
Temasek Holdings (Private) Limited (âTemasekâ), through its wholly-owned subsidiary Temasek Financial (IV) Private Limited (the âIssuerâ), is selling a Temasek Bond with a Public Offer to retail investors in Singapore on November 15, 2021, at 7.15 p.m.
Temasek shall unconditionally and irreversibly guarantee the T2026-S$ Temasek Bond, which consists of 1.8 percent fixed rate guaranteed notes due 2026 sold under the Issuer’s S$5 billion Guaranteed Medium Term Note Programme (the âProgrammeâ).
The T2026-S$ Temasek Bond’s planned Total Offering of up to S$350 million consists of:
(a) the issuance of S$250 million in bonds to institutional, accredited, and other specified investors; and (b) the issuance of S$250 million in bonds to institutional, accredited, and other specified investors.
b) A public offering of up to S$100 million in bonds to Singapore retail investors.
An Upsize Option, the Allocation Condition, and the Re-allocation all apply to the proposed Total Offering. More information will be provided later in this announcement.
The Issuer will provide Temasek and its investment holding entities with the net funds from the Total Offering to support their normal operations.
The T2026-S$ Temasek Bond has a tenor of five years from the scheduled Issue Date of November 24, 2021, and pays a fixed Interest Rate of 1.8 percent per annum, payable at the end of every six month period. CDP will be used to clear the bonds.
The Temasek Bond T2026-S$ will be issued in $1,000 denominations. The T2026-S$ Temasek Bond has a S$1,000 issue price.
The Offering Circular for the Programme dated 19 July 2021 and the Pricing Supplement in connection to the T2026-S$ Temasek Bond dated 15 November 2021, both announced on SGXNET on 15 November 2021, contain full information of the Total Offering and the T2026-S$ Temasek Bond.
The T2026-S$ Temasek Bond cannot be purchased with CPF or SRS funds in the Public Offer and Placement.
After the Total Offering is completed and the bonds are listed on the SGX-ST, investors with SRS accounts should consult their stockbrokers and the relevant banks in which they hold their SRS accounts if they intend to purchase the bonds from the market using SRS funds.
Under the Public Offer, applications must be in multiples of S$1,000, with a minimum subscription of S$1,000.
To apply for this bond, retail investors in Singapore will require their own CDP account.
- If an applicant submits more than one application under the Public Offer, all of the applicants’ applications will be rejected.
- Investors that applied through the Placement may only make ONE application through the Public Offer.
Applications for the Public Offer must be made in Singapore and must be paid in full right away.
If the T2026-S$ Temasek Bond is oversubscribed, Temasek plans to allocate it to as many retail investors as possible, similar to how the T2023-S$ Temasek Bond was allocated in 2018.
Before deciding on the final allocation strategy, Temasek will consider investor demand from the submissions submitted. If the total number of subscriptions received exceeds the number of subscriptions available under the Public Offer, an allocation method will be used.
If an applicant is unsuccessful in the Public Offer, in whole or in part, for any reason, the failed portion of the application fee will be reimbursed without interest.
âTerms, Conditions, and Procedures for Application and Acceptanceâ in Appendix B of the Pricing Supplement contains more information.
Institutional, Accredited, and Other Specified Investors in Placement Application and Payment Procedures
Under the Placement, applications must be in multiples of S$250,000, with a minimum subscription of S$250,000.
Unless the Issuer, Temasek, and the Joint Lead Managers and Bookrunners agree otherwise, applications under the Placement must be paid in full on or before the Issue Date. Applications may be sent directly to the Joint Lead Managers and Bookrunners or through the relevant private bank, broker, or securities firm, which will define the mode and method of submission at their discretion.
Without assigning any reason, the Issuer, Temasek, and the Joint Lead Managers and Bookrunners reserve the right to refuse or accept any application in whole or in part, or to scale down, poll, or allocate any application. This right is applicable to all bond applications.
Anyone interested in subscribing to the Public Offer or the Placement should read the Offering Circular and the Pricing Supplement carefully before proceeding. Applications must be submitted according to the procedures outlined in the Pricing Supplement.
The Product Highlights Sheet for the T2026-S$ Temasek Bond dated 15 November 2021 should also be read by retail investors.
In the event that the Public Offer and/or Placement are oversubscribed, the Issuer and Temasek may exercise an Upsize Option to increase the Total Offering up to S$500 million. The Issuer and Temasek will decide on the ultimate allocation between the Public Offer and the Placement (including any Re-allocation), subject to the Allocation Condition being met.
The Issuer is not required to issue any T2026-S$ Temasek Bonds unless at least 20% of the bonds are sold to institutional investors and other relevant parties. This 20% minimum allocation requirement is imposed by law, and it must apply to all bonds issued or to be issued to the Joint Lead Managers and Bookrunners for their own accounts; and
The Issuer and Temasek may reassign the principal amount of the T2026-S$ Temasek Bond between the Public Offer and the Placement at their discretion.
Moody’s has assigned Temasek an overall corporate credit rating of âAaaâ and S&P has assigned it a âAAAâ. The bonds are rated âAaaâ by Moody’s and âAAAâ by Standard & Poor’s. A credit rating does not imply that you should buy, sell, or hold the bonds. The credit ratings are not designed for use by individual investors, and retail investors should not base their investment decisions on them. Before making any decisions based on credit ratings, all investors should consult with their professional advisors.
DBS Bank Ltd. is the Global Coordinator, and DBS Bank Ltd., Oversea-Chinese Banking Corporation Limited, United Overseas Bank Limited, The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch, and Standard Chartered Bank (Singapore) Limited are the Joint Lead Managers and Bookrunners for the Total Offering.
When it comes to altering the timeline, accepting or rejecting any application, or exercising the Upsize Option and/or the Re-allocation, the Issuer and Temasek may consult the Joint Lead Managers and Bookrunners.
The Issuer anticipates allocating the first bonds under the Placement to institutional, accredited, and other designated investors on or around November 15, 2021. Following the initial allocation of bonds, the Issuer may (but is not obligated to) allocate bonds under the Placement from time to time until the Placement’s offering period expires.
The retail public offer is scheduled to begin at 9 a.m. on November 16, 2021, and end at 12 p.m. on November 22, 2021.
Prospective investors should take note of the significant dates and times listed below in the Expected Timetable for the main events in the Total Offering:
The Expected Timetable is simply a guideline and may change. All dates and hours mentioned above are in Singapore time.
The SGX-ST gave in-principle permission for the listing and quotation of the T2026-S$ Temasek Bond on the SGX-Main ST’s Board on October 26, 2021, subject to certain restrictions. Such approval should not be interpreted as a recommendation for the Issuer, Temasek, their respective subsidiaries (if any), associates (if any), the Programme, or the bonds. On November 25, 2021, the T2026-S$ Temasek Bond is planned to be listed on the SGX-Main ST’s Board. Each board lot of the T2026-S$ Temasek Bond will consist of S$1,000 in principal amount for purposes of trading on the SGX-Main ST’s Board.
The listing approval is conditional on adequate disclosure of all risks and material information in the Offering Circular, Pricing Supplement, and, where applicable, the Product Highlights Sheet in respect of the bonds, in order for investors to make an informed investment decision on the bonds, and it is also conditional on the following:
I to adhere to all applicable listing rules and standards, as they may be amended from time to time;
(ii) that the SGX-ST has sole discretion over the listing and quotation of the bonds. It may be removed from the SGX-Main ST’s Board’s Official List at any time, or the bonds may be stopped or removed from listing or quotation without the SGX-ST providing a cause;
(ii) that the SGX-ST may modify or waive the listing rules at its discretion;
(b) in regard to the offering of the bonds, the material information contained in the Offering Circular, Pricing Supplement, and, if applicable, the Product Highlights Sheet is the current and updated version;
(d) Before being listed, a copy of the signed subscription agreement, agent bank agreement, fiscal and agency agreement, and trust deed must be supplied.
(e) a copy of any document, such as a deed poll, that may be relevant to the offering of debt securities will be supplied prior to listing, as required by Rule 314 of the Listing Manual;
(f) the amount of bonds issued to institutional investors and relevant individuals (as defined in Singapore’s Securities and Futures Act, Chapter 289), excluding any bonds issued to the lead manager, arranger, and underwriter for their own accounts, is at least 20% of the total amount of bonds issued;
(g) for the issue of the bonds, the exemption criteria in the Securities and Futures (Offers of Investments) (Exemption for Offers of Straight Debentures) Regulations 2016 have been met;
(h) the Trustee is appointed in accordance with Rule 308(3) of the Listing Manual;
I the Issuer has no interest in or relationship with the Trustee that could conflict with the Trustee’s position as trustee; and (ii) the Issuer has no interest in or relationship with the Trustee that could conflict with the Trustee’s role as trustee.
(j) that the trust deed governing the bond issue conforms with the Listing Manual’s Rule 308(5) standards.
How can I purchase bonds on the Singapore Exchange?
Your securities broker can trade your SGS bonds on the SGX if they are kept in your CDP or SRS account. SGS bonds can also be purchased on the SGX with cash or SRS funds. Transaction and brokerage fees apply when trading on the SGX. 9 a.m. to 5 p.m., with a break between 12 and 1 p.m.
Is a Temasek bond a good investment?
Moody’s Investors Service has given Temasek an overall corporate credit rating of “Aaa” and S&P Global Ratings has given it a “AAA” rating. Moody’s has given the T2026-S$ Temasek Bond a “Aaa” rating, while S&P has given it a “AAA” rating.