Temasek arm launches first listed PE bonds for retail investors

Three classes are available at 4.35%, 5.50%, and 6.75% fixed interest rates per annum, respectively.

Temasek subsidiary Azalea Investment Management (AIM) launched the first listed private equity (PE) for retail investors in Singapore at $90.5m. The Class A-1 bonds offering will have a fixed interest rate of 4.35% per annum whilst A-2 and A-3 bonds will have 5.50% and 6.75% interest rates per annum, respectively.

The offer for subscription by the public in Singapore will start 6 June from 9 am and close at 12 noon on 12 June, an announcement from issuer Astrea IV.

Expected issue date for the bonds will be on 14 June whilst its trading in board lot sizes of $1,000 is expected to start in the Singapore Exchange (SGX) by 18 June. Temasek is seeking to raise $500m from the PE bonds.

“Traditionally, private equity has been accessible to mostly institutions and high net-worth individuals,” AIM CEO Margaret Lui said.

Also read: Temasek eyes opening private equity to retail investors

“This Astrea IV transaction marks the first time retail investors can invest in private equity bonds at an affordable level, starting with a subscription of S$2,000,” she added.

Meanwhile, Temasek chief executive Ho Ching said that the firm has seen retirement as one of a key challenge since people in Asia are living longer due to better economic growth.

"One of the things we decided to do is to try and make use of our skills and strengths to create new products for individuals to invest for their retirement,” she commented during the Stewardship Asia Forum held on 4 June.

The chief executive said that aside from the Central Provident Fund (CPF), the private equity bond offered by their firm will supplement retirees’ income.