General Announcement::SGX proposes greater retail access to bonds

Issuer & Securities

Issuer/ Manager
SINGAPORE EXCHANGE LIMITED
Securities
SINGAPORE EXCHANGE LIMITED - SG1J26887955 - S68
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
01-Sep-2014 17:47:56
Status
New
Announcement Sub Title
SGX proposes greater retail access to bonds
Announcement Reference
SG140901OTHR41WX
Submitted By (Co./ Ind. Name)
Carolyn Lim
Designation
Vice President, Marketing & Comms
Description (Please provide a detailed description of the event in the box below)
Singapore Exchange (SGX) is consulting the public on a proposal to give retail investors improved access to bonds currently offered only to institutional and accredited investors ( wholesale bonds ).

Leveraging on Singapore s position as a leading listing venue for bonds with its AAA long-term credit rating and robust regulatory framework, the proposed framework will improve access in two ways. First, retail investors can purchase SGX-listed wholesale bonds initially denominated in $200,000 or above in smaller lot size six months after their listing ( seasoned bonds ). Second, SGX proposes to allow issuers to make subsequent offers of new bonds on the same terms as the seasoned bonds to retail investors directly. Eligible issuers will be able to offer bonds more efficiently to retail investors through this framework.

SGX proposes to apply the regulatory framework only to plain vanilla bonds with an initial minimum principal amount of S$300 million and a maximum tenure of 10 years. Safeguards in the form of qualifying criteria for issuers and disclosure requirements underpin the proposed framework. (Please see Annex A for issuers qualifying criteria.)

In a separate public consultation, the Monetary Authority of Singapore (MAS) is proposing prospectus exemption for eligible issuers (i) offering plain vanilla bonds and (ii) making subsequent offers of bonds on the same terms as seasoned bonds.

Attachments

20140901_Reg_Ann_SGX_proposes_greater_retail_access_to_bonds.pdf
Total size =98K