Developer Oxley Holdings has received such "overwhelming demand" for its retail bonds that it has more than doubled the total issue size.

The company had announced an initial offer of $125 million of the four-year retail bonds, which will pay a fixed rate of 5 per cent a year, but applications far exceeded that amount.

By the time the offer closed at noon on Tuesday, applications totalled about $349 million from the public and a further $100 million from the placement segment, giving it an overall subscription rate of 3.6 times.

The "overwhelming" response has prompted Oxley to raise the total issue size to $300 million - $225 million to the public offer and $75 million under the placement tranche.

Oxley executive chairman and chief executive Ching Chiat Kwong said yesterday: "The overwhelming interest ... is a clear indication of investors' growing appreciation for retail bonds."

Net proceeds are expected to be used for working capital and capital expenditure requirements as well as general corporate purposes, including refinancing loans.

The positive response to Oxley's offer comes hard on the heels of similarly strong demand for Perennial Real Estate Holdings' three-year retail bonds last month.

Perennial Real Estate said its offer received a total subscription of about $618 million from both the public offer and the placement tranche - an oversubscription of about 4.1 times based on the initial launch of $150 million.

Two other retail bonds have also been offered this year - from developer Frasers Centrepoint and jewellery firm Aspial Corporation.

The Oxley bonds, which are issued today, will commence trading on the Singapore Exchange at 9am tomorrow.

Oxley said the first interest payment is scheduled on May 5 next year. The bonds mature on Nov 5, 2019.