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Astrea V Resource List + Management Thoughts

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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.

Class A-1 bonds of Astrea V have a preliminary credit rating of A+(sf) by S&P. Fitch has an expected rating of Asf for A-1 and A-2 bonds, and BBBsf for Class B bonds.

S&P said in a May report that the rating is on the strength of Azalea’s substantial PE investing experience, the diversification of the portfolio of funds across managers and fund vintages, among others.


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:

https://secure.fundsupermart.com/fsm/article/view/15172/your-ultimate-guide-to-astrea-v-part-1

https://www.spratings.com/documents/20184/0/Astrea+V+Pte.+Ltd..pdf/6bfea45a-d4eb-6831-4822-df1fd2a2e2b2

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:

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