MAS scraps $50,000 issue limit for Singapore Savings Bonds

The Monetary Authority of Singapore said the removal of the cap will simplify the Singapore Savings Bonds programme, allowing investors to apply for a larger amount of a particular issue.
The Monetary Authority of Singapore said the removal of the cap will simplify the Singapore Savings Bonds programme, allowing investors to apply for a larger amount of a particular issue.ST PHOTO: LIM YAOHUI

SINGAPORE - The Monetary Authority of Singapore (MAS) has removed the $50,000 cap on the maximum amount an individual can hold of each issue of the Singapore Savings Bonds with effect from today.

It said the removal of the cap will simplify the SSB programme, allowing investors to apply for a larger amount of a particular issue.

The individual limit for an investor's total SSB holdings will remain at $100,00, said MAS.

The SSB allocation mechanism will continue to ensure that the bonds are distributed as evenly as possible amongst investors, with smaller applications to be filled first in the event of an oversubscription, said the central bank.

It noted that more than half of all SSB applications were for amounts less than S$10,000, reflecting the programme's appeal to small savers.

Over $1.9 billion of SSB have been issued to about 57,000 investors since the launch of the programme in October 2015, said the central bank. More than half of SSB investors are aged 41 and above, it added.

Approximately $362 million of SSB have been issued so far this year and MAS said it will offer around $2 billion of SSB for the whole year in 2018.

MAS said it will continue to monitor the subscription levels closely in determining the monthly issue size.

The next SSB bond is now open for applications today and will stay open till March 26. Those who subscribe for this issue and hold onto the bond until maturity in April 2028 will get an average compounded annual return of 2.31 per cent.