Tuesday, May 24, 2022

Applied Astrea 7 Class A-1 PE Bond


The dateline for IPO application for Astrea 7 Private Equity Class A-1 and Class B bonds is 12pm on 25 May 2022. The bonds will commence trading on SGX on 30 May 2022, 9am.

The Class A-1 bonds are in Singapore dollars and yield 4.125% p.a. and its yield will be stepped up by 1 % if not redeemed at the end of 5 years while Class B bonds are denominated in US dollars and come with higher credit risk profile as they rank junior to Class A-1 and A-2 bonds in terms of priority of payment hence higher returns at 6% p.a. Likewise, the Class B bonds will have a step-up from 6% to 7% if they are not redeemed at the end of 6 years.

Astrea 7 PE bonds are backed by cashflows from a $1.9 billion portfolio of investments in 38 PE funds, which have 982 investee companies.
As the Class A-1 bonds are rated A+sf, I would not mind stomaching the relatively low risk to reward ratio by putting some of my spare funds into it to earn a yield comparable to my CPF Special Account and higher than the capital protect risk-free Singapore Savings Bonds.

I have applied $11k of Astrea 7 PE Class A-1 bonds via OCBC Internet Banking today.

Wishing myself and all applicants good luck!

With love & peace, 


Anonymous said...

How much were you allocated?

Qiongster said...

$9k out of $11k

Anonymous said...

9 out of 11. Is that a sign of low take up? What's your view?