The retail tranche of Astrea V will close at 12.00 pm on 18 June 2019.
I did an earlier video case study on the structural safeguards which you can get here:
Astrea Bonds Investment Case Study [Video]
Key Points of Astrea V
From Business Times:
Retail investors may subscribe for S$180 million worth of Class A-1 bonds, with a fixed coupon of 3.85 per cent.
This is more than half of the total issuance of Class A-1 bonds of S$315 million.
The balance is a placement tranche of S$135 million for institutions and accredited investors.
The minimum subscription for A1 bonds is S$2,000.
Class A-1 bonds have a final maturity of 10 years and a mandatory call at the end of five years.
The issuer is required to redeem the Class A-1 bonds on June 20, 2024, if there is sufficient cash set aside to repay Class A-1 bonds and other conditions are met.
Otherwise the interest rate for Class A-1 bonds will have a one-time step-up of 1 per cent until the bonds are fully redeemed.
I thought about writing more about it but there are already a ton of great resources on it that I won’t repeat and I’ve compiled some of them below:
Unfortunately I wasn’t able to attend the presentations due to work commitments but props for Azalea to hosting several presentations to educate the retail public about what is a relatively complicated issue.
You can also read my thoughts on the management team in my earlier post:
Astrea Investor Day 2019 Write-Up & Thoughts
Issue is likely to be heavily subscribed
The private placement was heavily subscribed and there is no reason to believe that the retail tranche won’t be:
The Public Offer follows the successful placement of S$135 million of the Class A-1 Bonds, US$230 million Class A-2 Bonds and US$140 million Class B Bonds to institutional investors and accredited investors, which concluded earlier today.
The placement tranche saw strong demand across all classes of bonds, with a combined placement orderbook in excess of US$3.4 billion equivalent from over 189 accounts.
In regards to my earlier point on how hard it will be to get a decent allocation, the team at Azalea was kind enough to send me the following information from their Q & A: