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MAS scraps S$50,000 issue limit for Singapore Savings Bonds

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The Monetary Authority of Singapore (MAS) has removed the cap that limits the maximum amount an individual can hold of each issue of the Singapore Savings Bonds at S$50,000 with effect from today.

THE Monetary Authority of Singapore (MAS) has removed the S$50,000 cap on the maximum amount an individual can hold of each issue of the Singapore Savings Bonds with effect from today.

It said the removal of the cap will simplify the SSB programme, allowing investors to apply for a larger amount of a particular issue.

The individual limit for an investor's total SSB holdings will remain at S$100,000, said MAS.

The SSB allocation mechanism will continue to ensure that the bonds are distributed as evenly as possible amongst investors, said MAS, with smaller applications to be filled first in the event of an oversubscription.

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MAS noted that more than half of all SSB applications were for amounts less than S$10,000, reflecting the programme's appeal to small savers.

Over S$1.9 billion of SSB have been issued to about 57,000 investors since the launch of the programme in October 2015, said the central bank. More than half of SSB investors are aged 41 and above, it added.

Approximately S$362 million of SSB have been issued so far this year and MAS said it will offer around S$2 billion of SSB for the whole year in 2018.

MAS said it will continue to monitor the subscription levels closely in determining the monthly issue size.

The details of the next SSB issue will be announced at 4.30 pm today and it will be open for applications from 6.00pm today to 9.00pm on March 26.