MAS opens applications for $1.2b maiden Singapore Savings Bond issue

It will be issued on October 1.

The Monetary Authority of Singapore (MAS) revealed today that the first Singapore Savings Bond will be open for application from September 1 to September 25.

Interested individuals may apply through DBS/POSB, OCBC and UOB ATMs or through DBS/POSB’s Internet Banking portal. 

In order to apply, investors must have an Individual Central Depository (CDP) Securities account with Direct Crediting Service (DCS) activated. Investors should also have their CDP account numbers at the point of application.

A $2 transaction fee will be charged for each application. This fee will not be refunded for unsuccessful or partially-successful applications.

Investors without CDP accounts but wish to apply for the first Savings Bond issue are advised to open their CDP accounts early as the account opening process takes at least two weeks. 

The MAS also reminded investors that Savings Bonds are not allocated on a first-come-first-served basis.

Instead, Savings Bonds are allotted after all applications have been collected, in a way that distributes the available bonds as evenly as possible to maximise the number of successful applicants.

A new Savings Bond will be issued every month for at least the next five years, so there is no need to rush for the first issue. Depending on demand, up to $4 billion of Savings Bonds could be issued in 2015.