General Announcement::News Release: SGX welcomes Astrea IV private equity bond retail offering

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
18-Jun-2018 09:42:49
Status
New
Announcement Sub Title
News Release: SGX welcomes Astrea IV private equity bond retail offering
Announcement Reference
SG180618OTHR8CWE
Submitted By (Co./ Ind. Name)
Sumathi Bala
Designation
Vice President, Marketing and Communications
Description (Please provide a detailed description of the event in the box below)
Singapore Exchange (SGX) today welcomed the listing of Astrea IV private equity (PE) Class A-1 bonds issued by Azalea Group, an indirect wholly owned subsidiary of Temasek Holdings. The issuance marks the first such structure in Singapore for retail investors to subscribe to PE bonds.

There are three tranches of the Astrea IV PE bonds Class A-1, Class A-2 and Class-B. The Class A-1 bonds, which have a total size of S$242 million and an annual interest rate of 4.35%, are listed on the SGX-ST Mainboard. The public offer tranche of the Class A-1 bonds was S$121 million. Another S$121 million of A-1 bonds, US$210 million of A-2 bonds and US$110 million of Class B bonds were offered to institutions and other investors via placement.

Astrea IV PE bonds are backed by cash flows from a portfolio of investments in 36 underlying PE funds. These funds have a net asset value of US$1.1 billion, and are invested in 596 investee companies globally across multiple sectors.

Margaret Lui, Chief Executive Officer of Azalea, said, "Until now, private equity has generally been accessible only by sophisticated and accredited investors. Astrea IV as the first listed retail private equity bonds in Singapore uniquely transforms PE into bonds, offering a product that allows retail investors to tap into private equity fund investments to enjoy a regular fixed income, while also diversifying their investment portfolio."

Chew Sutat, Head of Equities and Fixed Income, SGX, said," We are delighted to welcome the listing of the Astrea IV PE Bonds, which offers a new asset class to retail investors. As our fixed income market grows to meet the investment needs of investors and funding requirements of issuers, we hope that this opens the market for more high-quality issuers and issuers from the broader asset backed securities sector."

The Astrea IV PE bonds will start trading on SGX from today.

Attachments

20180618_SGX_welcomes_Astrea_IV_private_equity_bond_retail_offering.pdf
Total size =281K