Astrea V Balloting and Allocation Results

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So the Astrea V balloting results are out and they’re pretty interesting.

This is Astrea V:

The Issuer received nearly S$820 million in valid applications as at the close of offer, 12 noon yesterday, from a total of 30,816 applicants. This equals 4.5 times subscribed.

By contrast, Astrea IV was:

The Issuer received nearly S$890 million in valid applications as at close of offer by noon
yesterday. This equals 7.4 times subscribed.

So both Astrea V and Astrea IV received roughly the same number of applications, but becuase Astrea V has a much larger offering size, it was less oversubscribed. Which is pretty amusing because it seems like everyone who applied for Astrea IV, probably came out and bought Astrea V again, which is why the total application amount is so similar.

On the whole I would say this was quite a good performance for Astrea V. Retail take up was very strong despite all the talk about the risk-reward not being compelling, and the lower yield compared to Astrea IV.

The full ballot table is set out above, and everyone who applied S$5,000 to S$10,000 got S$5,000. Those who applied S$11,000 to S$39,000 got S$6,000.

If you were one of those crazy guys who applied for S$500,000, you actually had a 50% chance of getting S$50,000, which is quite a good allocation really.

For me? I applied for S$10,000 just like I did last year, so S$5,000 for me. I’m pretty pleased with this to be honest, it’s quite a good bond to diversify my portfolio, and frankly I think that if these are held to maturity, the chances of default are incredibly low.

Here is the full news release and balloting announcement for those who are keen.

Are you pleased with your Astrea V ballot allocation? Share your thoughts in the comments section below! I respond personally to all comments!


Astrea V Pte. Ltd. (the “Issuer”) and Azalea Investment Management Pte. Ltd. (“Azalea”) would like to thank investors for their strong support for the retail offering of the Astrea V Class A-1 Bonds. 
 
The Issuer received nearly S$820 million in valid applications as at the close of offer, 12 noon yesterday, from a total of 30,816 applicants. This equals 4.5 times subscribed.
 
The allocation to 28,358 retail applicants reflects the Issuer’s desire to distribute the Class A-1 Bonds to a broader retail investor base, especially in favour of the smaller retail investors. All applicants who applied for less than S$50,000 received some allocation. 75% of the Class A-1 Bonds were allocated to these applicants, and those who applied for S$5,000 or less received full allocations.
 
Margaret Lui, Chief Executive Officer of Azalea, said, “Demand for the Astrea V PE Bonds was strong and we are pleased to have broadened our investor base. We greatly appreciate and thank our retail applicants for the encouraging response and feedback. We seek investors’ understanding if they did not receive the allocations they applied for, as demand far exceeded the amount offered.”
 
Please find the announcement and press release attached for reference.
 
Thank you.


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6 COMMENTS

  1. Thanks for the update. Based on the success of both Astrea V and Astrea IV, moving forward I believe Temasek will continue to issue these PEC bonds as well as offer more corporate bonds to retail investors which was previously exclusive to institutions or accredited investors. This may be to develop the bonds market in Singapore and/or ensure that retail investors have sufficient choices to make bond investments.

    • Yes, I agree. I think this is part of a broader move by Temasek to open up the retail bond market in Singapore. 🙂

  2. I’m really excited as I’m a total greenhorn – have meager knowledge of bonds/investment so thought this was a good place to start.. still alot of terms which I don’t understand but hopefully you’ll cover more 🙂 Thanks!

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