Singapore Exchange offers corporate bonds for retail investors

SGX to launch investor education through seminars and workshops to better understand fixed income investments.

Singapore Exchange (SGX) on Tuesday said that corporate bonds for retail investors will be available, for the first time, on SGX primary and secondary markets, according to an SGX report.

These corporate bonds, issued by SGX-listed companies and other organisations, will be traded in smaller denominations, making it attractive to the growing pool of retail investors in Asia. SGX offers an easily accessible, cost efficient and transparent bond market. Real-time prices as well as volume and price information will be made available on its website.

In this regard, Singapore Airlines has announced on Tuesday an offer of S$300 million in bonds due in 2015, a portion of which is to be offered to the public. The Public Offer will open on 22 September. This issue of corporate bonds will be tradable on SGX Mainboard on 1 October.

Ms Tng Kwee Lian, Senior Vice President and Head of Fixed Income, SGX said, “We are pleased to have Singapore Airlines, an STI component stock, as the landmark offer of an on-exchange tradable bond for retail investors. This is the first in a series of corporate bonds we are offering to retail investors. Our initiative to develop the bond market for retail investors augments SGX’s value proposition as an innovative and leading trading hub in Asia.”

SGX will also spearhead investor education efforts with a series of seminars and workshops to help investors better understand fixed income investments and make informed decisions.