Singapore to launch savings bond programme in second half of 2015

THE Singapore government plans to launch its savings bonds programme in the second half of 2015, the Monetary Authority of Singapore announced on Monday.

The principal-guaranteed, non-tradable bonds will offer returns that match Singapore Government Securities, up to a maximum tenure of 10 years.

The bonds are aimed at offering investors a simple, low-cost option that offers long-term savings and safe returns.

The bonds will be issued by the Singapore government, and therefore bear the country's credit quality.

They will mature after 10 years, but may be redeemed at any time. The coupons will step up over time, such that the average interest paid from the start through a particular year will match the yield on a Singapore Government Security that matured in that year and had been bought at the start.

The bonds will be issued every month, and only individuals will be allowed to buy them. The bonds will be sold in denominations of S$500, and there will be a cap to how much an individual can buy. The cap has yet to be set.

Further details, such as how to buy, will be released closer to the launch date.