Azalea Asset Management to launch Astrea 8 PE bond with total offering size of US$585 mil
Azalea Asset Management will be listing the Astrea 8 private equity (PE) bonds in July. This is the fifth listed retail bond that gives retail investors in Singapore access to the PE asset class. Astrea IV was the first such bond to be available to Singapore retail investors. It was launched in June 2018.
The preliminary prospectus was lodged by the bond’s issuer, Astrea 8 Pte. Ltd. on July 1. Astrea 8 is indirectly wholly-owned by Azalea Asset Management, which is, in turn, wholly-owned by Seviora Holdings. Seviora Holdings is indirectly wholly-owned by Temasek Holdings.
The total offering size of the Astrea 8 bonds is approximately US$585 million ($792.6 million). The figure comprises $500 million worth of Class A-1 bonds and US$215 million worth of Class A-2 bonds. Both classes are ranked equally in terms of priority of payment.
The public offer for Class A-1 bonds is $250 million while the public offer for Class A-2 bonds is US$50 million.
https://www.theedgesingapore.com/ne...strea-8-pe-bond-total-offering-size-us585-mil
Fitch Assigns Expected Ratings to Astrea 8 Pte. Ltd.; Issues Presale
https://www.fitchratings.com/resear...to-astrea-8-pte-ltd-issues-presale-01-07-2024
Update:
Prospectus: https://links.sgx.com/FileOpen/Astr...10 July 2024.ashx?App=Prospectus&FileID=63280
Product highlights sheet: https://links.sgx.com/FileOpen/Astr...10 July 2024.ashx?App=Prospectus&FileID=63282
Homepage: https://www.azalea.com.sg/a8/overview
Class A-1 bonds: 4.35% pa. S$260m placement, S$260m public offer. Mandatory call in 5 years.
Class A-2 bonds: 6.35% pa. US$150m placement, US$50m public offer. Mandatory call in 6 years.
If not called at end of 5/6 years, will step-up one time to 5.35% pa and 7.35% pa respectively.
Public offer applications: minimum S$2k for class A-1 and US$2k for class A-2, in multiples of S$/US$1k. For Class A-2 applications, pre-determined exchange rate of US$1 to S$1.35.
From FAQs (https://www.azalea.com.sg/a8/faqs):
26) Will successful applications be satisfied in full? Is there potential for larger allocations?
Depending on demand, Astrea 8 plans to allocate valid applications as follows:
a) all applications of less than S$50,000 for Class A-1 Bonds or less than US$50,000 for Class A-2 Bonds will be allocated in full or in part; and
b) applications of S$50,000 or more for Class A-1 Bonds or US$50,000 or more for Class A-2 Bonds will be balloted, with successful applicants allocated in full or in part.
Astrea 8 reserves the right to change its allocation plan.
Key dates and times:
Opening date and time: 11 July 9am
Closing date and time: 17 July 12noon
Trading starts on SGX-ST: 22 July 9am
Azalea Asset Management will be listing the Astrea 8 private equity (PE) bonds in July. This is the fifth listed retail bond that gives retail investors in Singapore access to the PE asset class. Astrea IV was the first such bond to be available to Singapore retail investors. It was launched in June 2018.
The preliminary prospectus was lodged by the bond’s issuer, Astrea 8 Pte. Ltd. on July 1. Astrea 8 is indirectly wholly-owned by Azalea Asset Management, which is, in turn, wholly-owned by Seviora Holdings. Seviora Holdings is indirectly wholly-owned by Temasek Holdings.
The total offering size of the Astrea 8 bonds is approximately US$585 million ($792.6 million). The figure comprises $500 million worth of Class A-1 bonds and US$215 million worth of Class A-2 bonds. Both classes are ranked equally in terms of priority of payment.
The public offer for Class A-1 bonds is $250 million while the public offer for Class A-2 bonds is US$50 million.
https://www.theedgesingapore.com/ne...strea-8-pe-bond-total-offering-size-us585-mil
Fitch Assigns Expected Ratings to Astrea 8 Pte. Ltd.; Issues Presale
https://www.fitchratings.com/resear...to-astrea-8-pte-ltd-issues-presale-01-07-2024
Update:
Prospectus: https://links.sgx.com/FileOpen/Astr...10 July 2024.ashx?App=Prospectus&FileID=63280
Product highlights sheet: https://links.sgx.com/FileOpen/Astr...10 July 2024.ashx?App=Prospectus&FileID=63282
Homepage: https://www.azalea.com.sg/a8/overview
Class A-1 bonds: 4.35% pa. S$260m placement, S$260m public offer. Mandatory call in 5 years.
Class A-2 bonds: 6.35% pa. US$150m placement, US$50m public offer. Mandatory call in 6 years.
If not called at end of 5/6 years, will step-up one time to 5.35% pa and 7.35% pa respectively.
Public offer applications: minimum S$2k for class A-1 and US$2k for class A-2, in multiples of S$/US$1k. For Class A-2 applications, pre-determined exchange rate of US$1 to S$1.35.
From FAQs (https://www.azalea.com.sg/a8/faqs):
26) Will successful applications be satisfied in full? Is there potential for larger allocations?
Depending on demand, Astrea 8 plans to allocate valid applications as follows:
a) all applications of less than S$50,000 for Class A-1 Bonds or less than US$50,000 for Class A-2 Bonds will be allocated in full or in part; and
b) applications of S$50,000 or more for Class A-1 Bonds or US$50,000 or more for Class A-2 Bonds will be balloted, with successful applicants allocated in full or in part.
Astrea 8 reserves the right to change its allocation plan.
Key dates and times:
Opening date and time: 11 July 9am
Closing date and time: 17 July 12noon
Trading starts on SGX-ST: 22 July 9am
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. Any guess on what could be the interest rate? I think it would be just be 4-4.25% with the expectation of interest rate cut soon so can't expect it to be too good.
