Regulators may lower hurdles for selling wholesale bonds to retail investors

Singapore

SINGAPORE regulators could lower some hurdles for selling wholesale bonds to retail investors, following feedback from the public.

The latest proposals will relax conditions on deal size, a company's past issuance and profitability. The Singapore Exchange (SGX) will also update the listing manual on matters related to trustees, who are typically responsible for taking action against defaulters on behalf of bondholders.

Those proposals are part of a plan to allow issuers to offer wholesale bonds, which are sold to institutional investors, to retail investors after a six-month "seasoning" period, during which SGX will provide the daily calculated fair value of the bonds. The aim of seasoning is to allow price discov…