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Temasek-linked Astrea III PE bonds fully redeemed, with bonus paid
CLASS A-1 notes, offered by Temasek-linked private equity (PE) vehicle Astrea III, have been fully redeemed on Monday.
In addition to the principal amounts of the notes, the noteholders also received a bonus redemption premium of 0.3 per cent of the principal.
“We are heartened to see the full redemption of the first Singapore Exchange listed private equity bond, the Astrea III Class A-1 Notes,” said Margaret Lui, chief executive officer of Azalea Investment Management, in a statement.
“A bonus redemption premium of 0.3 per cent of principal was also paid at redemption as a result of the strong cashflow performance of the underlying portfolio of PE funds. This bears testament to the quality of the Astrea structure, in providing exposure to private equity through a fixed income product,” she added.
Astrea III, sponsored by Astrea Capital, is backed by cash flows from 33 funds across various vintages managed by 25 general partners. As at Dec 31, 2018, the funds were invested in 420 companies across different sectors and regions.
Launched in June 2016, Astrea III issued the first listed bonds in Singapore backed by cash flows from PE funds. The initial issuance, to institutional and accredited investors in 2016, comprised S$228 million of class A-1 notes with a yield of 3.9 per cent; US$170 million of class A-2 notes yielding 4.65 per cent; and US$100 million of class B notes yielding 6.5 per cent; and US$70 million of class C notes yielding 9.25 per cent.
The issuer of Astrea III is an indirect wholly owned subsidiary of Azalea Asset Management, which is a wholly owned unit of Temasek.