Astrea V issues PE-backed private equity bond offering for retail investors on SGX

One type of bond, Class A-1, has an annual rate of 3.85% due on 20 June 2029.

A unit of Azalea Asset Management, Astrea V, has issued private equity (PE) bonds on the Singapore Exchange (SGX) for retail investors, according to an announcement. Azalea Asset Management is a subsidiary of Temasek Holdings

Astrea V PE bonds consists of three classes of bonds: Class A-1, Class A-2 and Class B. Class A-1 bonds, which have an annual coupon rate of 3.85% paid semi-annually and due on 20 June 2029, are listed and traded on the Singapore Exchange Securities Trading (SGX-ST) Mainboard. Class A-1 bonds have an offer size of $315m, comprising a public offer tranche of $180m and a placement tranche of $135m. After five years, the bonds will have a mandatory call if conditions are met. If the bonds are not redeemed after five years, a 1% one-time interest step-up will be offered.

The Class A-2 and Class B bonds are listed on SGX’s wholesale bond market.

“The Astrea PE Bonds, fixed income products based on cash flows from well diversified portfolios of PE funds, introduce PE funds to retail investors via a conservative investment grade structure," Margaret Lui, CEO of Azalea Investment Management, the manager of Astrea V, said in a statement. 

With 38 underlying PE funds, invested into 862 companies across various sectors globally, Astrea V’s portfolio assets are worth US$1.3b. Backed by cash flows from different portfolio of PE funds, it is the second Astrea PE bond that gives retail investors access to PE fund investments through a fixed income structure.