Browsed by
Tag: temasek

All you need to know about Temasek’s Astrea IV bonds

All you need to know about Temasek’s Astrea IV bonds

 If you don’t already know, Astrea IV is a wholly-owned subsidiary of Azalea Asset Management Pte. Ltd, which is indirectly wholly owned by Temasek Holdings.

Bonds have traditionally been viewed as less volatile investments, paying out regular income over a fixed period of time. This characteristic also makes them a useful investment for retirees to continue receiving visible cash flows for their daily living requirements. Of course, investors who prefer less uncertainty in price fluctuation will also be drawn to bond investments.

In fact, earlier this month, Temasek Holdings CEO Ho Ching described the upcoming Astrea IV PE Bonds as a good “way to grow (our) retirement nest egg”. Unlike most bonds, the Astrea IV PE Bonds will be the first-of-its-kind allowing retail investors to access the private equity investment class that is usually exclusive to high net worth individuals, large financial institutions and funds. Here is a short run down of the description of the Astrea IV PE Bond.

Temasek's Astrea IV bonds
From Temasek’s Astrea IV bond’s prospectus

THE Azalea Group, a Temasek unit specialising in investments in private equity, has launched its first PE-backed bond for retail investors, with a smaller-than-expected retail tranche of S$121 million according to Straits Times.

The retail tranche of Class A-1 bonds carries an interest rate of 4.35 per cent. Retail investors may subscribe via ATM with a minimum investment of S$2,000.

Read More Read More