The latest public offer of bonds backed by private equity (PE) has been met with a strong retail response.
At the close of the offer, Astrea V's Class A-1 bonds for retail investors attracted nearly $820 million from over 30,800 applicants. This is equivalent to a subscription rate of 4.5 times.
Astrea V is the fifth in a series of PE-backed securities offered by the Azalea Group, a subsidiary of Temasek. In the latest issue, the Class A-1 retail offer totalled $180 million, with a fixed coupon of 3.85 per cent. For institutions and accredited investors, there were also a $135 million placement tranche of A-1 bonds, US$230 million (S$315 million) of A-2 bonds and US$140 million of Class B bonds.
For all three classes of bonds, Astrea V received subscriptions of a total of US$4 billion. This represents a subscription rate of 6.7 times the US$600 million of bonds on offer.
Seventy-five per cent of the Class A-1 bonds were allocated to applicants who applied for less than $50,000, with each receiving some allocation. Those who applied for $5,000 or less received full allocation. Balloting was conducted for those who applied for $50,000 or more, with successful applications allocated in part.
The Astrea V Class A-1 bonds will be issued today. Retail investors can check their allocations by logging into their Central Depository accounts tomorrow. The bonds are expected to begin trading tomorrow.
Astrea V is the second PE-backed bond issuance offered to retail investors. The first was Astrea IV last year, which was 7.4 times subscribed.
Keppel Reit's nearly 80 per cent-owned subsidiary Ocean Properties has obtained a secured green loan facility worth $505 million.
One of the terms and conditions is that the lender may give notice to Ocean Properties as a borrower to prepay any outstanding loans if the manager ceases to be a directly or indirectly wholly owned subsidiary of Keppel Corporation, according to Keppel Reit in a bourse filing on Tuesday.
If such an event occurs and if it were to cause a cross-default under other borrowings of the Keppel Reit group, the aggregate level of facilities that may be affected is estimated as at Tuesday to be $3.4 billion, excluding interest and fees.
Mr Paul Tham, chief executive of the manager, said: "The green loan facility reflects our commitment to sustainability, for the benefit of all our stakeholders."