Temasek-tied Astrea V Class A-1 bonds’ retail offering meets strong demand

The S$180 million retail offering of the Astrea V class A-1 bonds was 4.5 times subscribed, with almost S$820 million in valid applications from 30,816 applicants by the offer’s close Tuesday, Astrea V and Azalea Investment Management said in a statement Wednesday.

“Demand for the Astrea V private equity Bonds was strong and we are pleased to have broadened our investor base,” Margaret Lui, CEO of Azalea, said in the statement.

“The Astrea PE Bonds are fixed income products based on cashflows from well diversified portfolios of PE Funds. This serves to introduce PE funds to retail investors, via a conservative investment grade structure,” she said.

Lui added that Azalea hoped to offer retail investors the opportunity to invest in the higher-risk, higher-return classes of Astrea bonds.

All valid retail applicants who applied for less than S$50,000 received some allocation, taking up 75 percent of the class A-1 retail offering, the statement said. Those who applied for S$5,000 or less received their full allocation, Azalea said.

Balloting was conducted for those who applied for S$50,000 or more, with successful applications allocated in part, the statement said.

In all, 28,358 retail applicants were allocated bonds, it said.

The bonds will be issued, with trading on SGX expected to begin, on Thursday, Azalea said.

Astrea V is part of the Astrea Platform, which is a series of investment products based on private equity funds’ portfolios. Astrea V was launched by Azalea Group, which is wholly owned by Singapore state-owned investment company Temasek.

The retail offering of class A-1 bonds followed the placement of three classes of bonds to institutional and accredited investors: S$135 million of class A-1 bonds, US$230 million of class A-2 bonds and US$140 million of class B bonds, the statement said.

The three bond classes, including both the placement and the public offer, received valid subscriptions of US$4 billion, or a 6.7 times subscription rate for the total US$600 million worth of bonds offered, Azalea said.

High quality institutions took up 55 percent of the bonds, accredited investors acquired 23 percent and retail investors in the public offer received 22 percent, the statement said.

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