can only rely on track records.
Astrea Bonds have consistently demonstrated a dependable history of meeting redemption obligations:
- Astrea III (2016), Astrea IV (2018), and Astrea V (2019) were all redeemed on their respective callable dates.
for Astrea 8 SGD 1st callable is 5 years. if not called, step up 1% in coupon, till year 15
The Class A-1 bonds have an interest rate of
4.35% p.a., a semi-annual interest payment, and a Mandatory Call scheduled for July 2029, contingent upon meeting specific conditions. If these bonds are not called, the coupon rates will increase by 1.0% per annum just once.
for Astrea 8 USD 1st callable is 6 years. if not called, step up 1% in coupon, till year 15
Pending certain conditions, the Class A-2 bonds have an interest rate of
6.35% p.a., a semi-annual interest payment and are scheduled for a Mandatory Call in July 2030. If these bonds are not called, the coupon rates will increase by 1.0% per annum just once.
- if economic conditions then is low borrowing rates (in year 5 and 6) which means your FDs are all in the lower regions like pre covid days, then likely they will be quite dumb not to call back these bonds and release new ones at lower coupons.
- if economic conditions then is higher borrowing rates, will your FDs and such pay you more than 5% for SGD or 7% for USD?
- anyways you know astrea retails bonds can be publicly traded in the secondary market right?
https://blog.seedly.sg/astrea-8-bonds/
