MAS raises April Singapore savings bond size to $200m

It cited two bond issues in 2018 that were oversubscribed for over $171m.

The Monetary Authority of Singapore (MAS) increased the monthly issuance size of the Singapore Savings Bond (SSB) programme from $150m to $200m from this month.

According to an announcement, this is in response to the increasing demand for SSB, which saw oversubscriptions in two issues since the start of the year. SBFeb18 received total applications of approximately $171m whilst SBApr18 received total applications of $261m.

“More than $500m of SSB have been issued so far this year, and around $2b of SSB will be offered in 2018,” the MAS said.

The interest rates for the upcoming issue of SSB (SBMay18) are calculated based on the average yields of the Singapore Government Securities (SGS) in March 2018. MAS said that for this issue, the average return would be 2.39% per year if held till maturity (i.e. 10 years).

Individuals who wish to invest in the SBMay18 issue of the SSB may submit applications from 6 p.m. on 2 April 2018, to 9 p.m. on 25 April 2018. 

Previously, MAS also discarded the $50,000 Issue Limit for the Singapore Savings Bonds (SSBs). “The removal of the Issue Limit will simplify the SSB programme, allowing investors to apply for a larger amount of a particular SSB issue,” it said.