Latest Astrea bonds over 3 times subscribed, drawing more than $3.4 billion in demand
Fund manager Azalea increased the bond's retail tranche by 37 per cent compared to previous issuance to meet demand.
SINGAPORE - Investor demand for the latest Astrea private equity (PE) bonds has surged, with total subscriptions surpassing $3.4 billion across all three classes – 3.4 times the total US$780 million (S$1 billion) issued under both the public and placement tranches.
In a statement on Aug 7, fund manager Azalea Investment Management – which offered the Astrea 9 bonds – described it as its largest retail order book to date, underscoring strong investor confidence in the platform's track record and credit quality.
The public offers for Class A-1 and Class A-2 bonds alone drew over $1.5 billion in valid applications – 3.5 times the combined $380 million and US$50 million offered. To meet growing demand from individual investors, Azalea increased the retail tranche in Astrea 9 by 37 per cent compared to the previous issuance, Astrea 8.
For the Singapore dollar-denominated Class A-1 bonds, Azalea received $1.2 billion in valid applications from 34,969 applicants, with more than 82 per cent of the bonds allocated to those who applied for $50,000 or less.
The US dollar-denominated Class A-2 bonds saw US$280 million in valid applications from 12,592 applicants, with close to 80 per cent of the bonds allocated to those who applied for US$50,000 or less.
'We are truly heartened by the overwhelming response to the Astrea 9 public offers, which resulted in the largest retail orderbook we have seen to date,' said Chue En Yaw, chief executive officer and chief investment officer of Azalea. 'With the expanded size of the public offers, our aim was to meet growing retail demand for Astrea PE Bonds – and we are encouraged by the strong participation from investors.'
Azalea, an indirect subsidiary of Temasek, also stepped up investor outreach with explainer videos, seminars and a hybrid session held on Aug 4 to help retail investors better understand the offering. More retail engagement is planned through its annual Astrea Investor Day.
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