Temasek-tied Astrea III fully redeemed its class A-1 notes Monday, the scheduled maturity date for the three-year notes, Azalea and Astrea said in a filing to SGX Monday.
In addition to the principal amounts of the notes, the noteholders also received a bonus redemption premium of 0.3 percent of the principal, the filing said.
“We are heartened to see the full redemption of the first Singapore Exchange listed private equity bond, the Astrea III Class A-1 Notes,” Margaret Lui, CEO of Azalea Investment Management, said in the statement.
“A bonus redemption premium of 0.3 percent 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.
Lui noted that Astrea IV and Astrea V were launched in 2018 and 2019 respectively, with both offering a tranche of bonds to Singapore retail investors.
“Through the Astrea private equity bonds, private equity is now more accessible to the wider investment community, and we are grateful for the strong support from investors, she said. “Moving forward, we are also looking to develop more new and innovative products based on private equity.”
Astrea III is part of the Astrea Platform, which is a series of investment products based on private equity funds’ portfolios.
It included four classes of private-equity bonds: Classes A-1, A-2, B and C, with respective interest rates of 3.90 percent, 4.65 percent, 6.50 percent and 9.25 percent, the filing said. The notes were offered to institutional and accredited investors, it said.
The private equity bonds were backed by cashflows from a portfolio of 33 funds, which invested in 420 companies across different sectors and regions, as of end-December 2018.
Astrea III is sponsored by Astrea Capital, which is a wholly owned subsidiary of Azalea Asset Management, which in turn is wholly owned by Singapore state-owned investment company Temasek.
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