Azalea’s Astrea 8 PE bonds around 3 times subscribed at over S$1 billion
The bonds were 2.8 times subscribed overall and more than three times subscribed in the public-offer tranche
THE latest batch of Astrea private equity (PE) bonds, launched by Azalea Investment Management, was overall 2.8 times subscribed.
Total subscription received for the public offers of both classes of Astrea 8 PE bonds, Class A-1 and Class A-2, was over S$1 billion. This was more than three times of the S$260 million and US$50 million of bonds offered, said the issuer and Azalea in a statement on Thursday (Jul 18).
For the retail offerings, the issuer received over S$763 million from a total of 27,287 valid applicants for the Class A-1 bonds – the equivalent of a subscription rate of 2.9 times.
The Class A-2 bonds attracted 9,894 valid applicants at US$194 million, representing a subscription rate of 3.9 times.
More than 76 per cent of the bonds were allocated to valid applicants who applied for under S$50,000 for Class A-1 bonds, or US$50,000 for Class A-2 bonds.
Those who applied for S$50,000 or more for Class A-1 bonds, and US$50,000 or more for Class A-2 bonds, were balloted at a 1:2 ratio.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Meanwhile, more than 74 per cent of Class A-1 bonds were allocated to all valid applications of less than S$50,000, with allocations received either in full or in part. More than 85 per cent of Class A-2 bond applications of US$50,000 or less were similarly allocated.
Full allocations were received by those who applied for S$9,000 or less of Class A-1 bonds, and those who applied for US$4,000 or less for Class A-2 bonds.
Overall, 93 per cent of valid applicants of Class A-1 bonds and 96 per cent of valid applicants for Class A-2 bonds received allocations.
Azalea said distribution of the bonds in the placement tranche was diversified across “high-quality” institutions, such as endowments, pensions, insurance companies and asset managers, who accounted for about two-thirds of the investor base. The remaining bonds were distributed to accredited investors. (*see amendment note)
Margaret Lui, Azalea’s chief executive officer, said the enthusiasm for Astrea 8 PE bonds underscores its reputation as a trusted partner in private equity.
Azalea is part of the Temasek group and manages around US$9 billion in assets.
“The sustained interest and demand for (the bonds) is a strong testament to retail investors’ confidence in Azalea and the Astrea platform, underpinned by our proven track record,” said Lui.
Clifford Lee, global head of investment banking at DBS, which is a lead manager and underwriter of Astrea 8, added: “The strong response to Azalea’s latest offering underscores the consistent appeal of investment-grade Astrea bonds across market cycles, making the Astrea platform the largest retail bond platform in Singapore.”
The Astrea 8 Class A-1 and Class A-2 bonds will be issued on Jul 19 and commence trading on the Singapore Exchange (SGX) on Jul 22.
Applicants who did not receive their allocation will have their respective balances refunded by 6 pm on Jul 19.
Once trading starts, investors may also buy or sell the bonds over the SGX at the prevailing market price.
Amendment note: This story has been amended to clarify that public offers of Astrea 8 PE bonds were more than three times subscribed and 2.8 times subscribed overall. Two-thirds of bonds were distributed to “high-quality” institutions for the placement tranche in specific.
Copyright SPH Media. All rights reserved.
