Latest news with #Azalea
Straits Times
3 days ago
- Business
- Straits Times
Latest Astrea bonds over 3 times subscribed, drawing more than $3.4 billion in demand
Sign up now: Get ST's newsletters delivered to your inbox 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. Top stories Swipe. Select. Stay informed. Asia Cambodia, Thailand agree on Asean observers monitoring truce, but fundamental differences remain Business Who loses the most from Trump's tariffs? Who wins? Singapore Flying greener will come at a price, industry players warn Singapore Liquor licences for F&B, nightlife venues extended to 4am in Boat Quay, Clarke Quay Opinion At 79, Liew Mun Leong has no time to be sentimental Singapore Student found with vape taken to hospital after behaving aggressively in school; HSA investigating Singapore Chikungunya cases in Singapore double; authorities monitoring situation closely Singapore CDC and SG60 vouchers listed on e-commerce platforms will be taken down: CDCs
Business Times
4 days ago
- Business
- Business Times
Azalea's Astrea 9 bonds over 3 times subscribed, draw more than S$3.4 billion in demand
[SINGAPORE] Investor demand for the latest Astrea private equity (PE) bonds has surged, with total subscriptions surpassing S$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 Thursday (Aug 7), fund manager Azalea Investment Management – which offered the Astra 9 bonds – described it as its largest retail orderbook 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 S$1.5 billion in valid applications – 3.5 times the combined S$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 S$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 S$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 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. The bonds will begin trading on the Singapore Exchange on Aug 11, 9 am.
Straits Times
6 days ago
- Business
- Straits Times
Astrea bonds open up private market for S'pore retail investors, but note the risks, say observers
Sign up now: Get ST's newsletters delivered to your inbox Astrea 9 will be the sixth series of listed PE bonds with tranches for public subscription. SINGAPORE – With interest rates on flagship savings accounts coming down, fixed deposits becoming less attractive and rates on risk-free Singapore government securities also coming off highs, retail investors are looking around for places to park their spare cash. Many flocked to the auditorium at the Singapore Exchange (SGX) in Shenton Way on Aug 4 evening to find out more about the Astrea series of private equity (PE) bonds issued by Azalea, an indirect subsidiary of Temasek Holdings. The private markets were traditionally out of the reach of retail investors until 2018, when the Astrea IV series of PE bonds was launched. Astrea 9 will be the sixth series of listed PE bonds with tranches for public subscription. Mr Kyith Ng, founder of financial blog Investment Moats, said a private equity fund invests in companies which are not listed. By buying this Astrea 9 PE bond, a retail investor is essentially lending money to a portfolio of 40 PE funds which invest in 1,086 unlisted firms, as opposed to buying a corporate bond issued by a listed company. A bond issued by a private equity fund is considered to be riskier, he noted. According to the product highlights sheet of Astrea 9, there may be a limited trading market for the bonds, which thus poses liquidity risks. Retail investors must be prepared to hold these PE bonds until maturity as they may not be able to sell their bonds at a price which is attractive, or even sell them at all. In addition, there is no guarantee of returns, so investors may lose all or part of their investment. Notwithstanding the risks, Mr Ng said there are safeguards in place to prioritise the half-yearly interest coupon payments and the final principal amount to retail bondholders. He added that the diversified portfolio of 40 PE funds further reduces the risks for retail investors. Azalea is offering $380 million of Class A-1 bonds at a fixed interest rate of 3.4 per cent a year, as well as US$50 million (S$64.4 million) of Class A-2 bonds at a fixed interest rate of 5.7 per cent a year. The Class A-1 Bonds are denominated in Singapore dollars, while Class A-2 Bonds are denominated in US dollars. Investors applying for the Class-A2 bonds will pay in Singdollars at the fixed exchange rate of $1.2852 for every US$1. If they are subsequently allotted less than the amount they applied for, they will be reimbursed in Singdollars at the same exchange rate. The bonds are backed by cash flows from a portfolio of PE investments that is diversified across sectors from information technology (31 per cent), industrials (21 per cent) and healthcare (15 per cent) to financials (8 per cent) and consumer discretionary (8 per cent). The portfolio is also diversified across geographical regions, with the bulk of the focus in the United States (66 per cent), Europe (26 per cent) and Asia (8 per cent). Senior lab technician Dallas Goh, 34, has been buying the PE bonds since Astrea IV, when these investments were first made available to retail investors. It is no different this time round. Mr Goh is using $25,000 to subscribe for the US-dollar version and $25,000 for the Singapore-dollar version of Astrea 9. He is expecting strong interest in the latest series of PE bonds and thinks he can get at most $10,000 worth for each tranche. Mr Goh was initially going to apply only for the US dollar-denominated tranche of Class A-2 bonds but changed his mind after UOB announced on Aug 1 that it will drop the deposit rates on its flagship UOB One account from Sept 1. 'I think rates will be dropping at the other banks soon. So I might as well just lock in some money for the Singdollar denominated bond even though the rates are not too ideal,' he said. He added that he is not too concerned about the weak US dollar, which will eat into his returns in Singdollar terms. 'The US dollar still has strength as a global reserve currency,' he noted. The US dollar index, which measures the value of the US dollar against a basket of six major foreign currencies like the Japanese yen and the euro, is down around 9 per cent from the beginning of the year to Aug 4, but remains off its year-to-date low of 96.776 on July 2. Mr Lim Jun Jie, director of investor solutions and marketing at Azalea Investment Management, said that holders of the US-dollar denominated tranche of Class A-2 bond face exchange rate risks as the coupons and principal amount are paid out in US dollars. The bonds are held in the Central Depository (CDP) and any cash distributions in US dollars are by default converted into Singapore dollars at the prevailing exchange rates. Retail investors who wish to hold on to their cash in US dollars will have to opt out of this currency conversion service, he noted. A first-time retail investor in Astrea who prefers to be known only as Ms Kim decided to dip her toes into Astrea 9 with around $20,000 to $30,000 for the Singapore-dollar tranche. The 54-year-old was sceptical at first, but after attending the seminar, she said she felt reassured that her investments would be relatively safe. 'Azalea is a subsidiary of Temasek Holdings,' she said, adding that she has confidence in the investment company. To which point, Mr Chue En Yaw, chief executive and chief investment officer of Azalea Investment Management, clarified that Astrea PE bonds are 'not guaranteed by anybody, including Temasek'. Mr Goh added that Azalea has a track record of redeeming its bonds so far. In addition, they are rated A bonds, so they should have a rather low default rate, he said. According to Azalea, the PE bonds issued by Astrea III, Astrea IV and Astrea V have been fully redeemed and retail investors have got back their principal. The Astrea VI Class A-1 bonds for retail investors are also on track to be fully redeemed on March 18, 2026, Azalea noted. Cash flows are typically generated from the 40 PE funds when they exit or sell their underlying investee companies. Some of that money goes towards paying interest coupons and to be set aside as cash reserves for the repayment of the principal. Azalea's Mr Lim noted that cash reserves are set aside every six months and if by the five-year mark, not enough has been set aside, Azalea will extend the bonds and retail investors will be compensated with an additional percentage point increase in the interest rate. This means Class A-1 bondholders get 4.4 per cent a year, while Class A-2 bondholders will get 6.7 per cent a year. 'That higher interest rate will apply until such time that Azalea reserves enough cash in the reserve accounts to redeem the bonds,' he said, adding that a review will be done every six months. High on potential investors' minds will be whether the interest rates are commensurate with the risks. Investment Moats' Mr Ng used the Nikko AM SGD investment grade corporate bond ETF to get a rough gauge on the yield for Singdollar corporate bonds. That fund has a weighted average maturity of 5.89 years and a weighted average yield to maturity of 2.86 per cent, according to its most recent June 2025 factsheet. The yield to maturity is the expected annual rate of return if the bond is held to maturity. This compares with 3.4 per cent a year for the Singdollar version of Astrea 9. As for US-dollar corporate bonds, the iShares iBoxx $ Investment Grade Corporate Bond ETF gives a rough indication. That fund has a weighted average maturity of eight years and a weighted average yield to maturity of 5.08 per cent as at Aug 1. That compares with 5.7 per cent a year for the US-dollar version of Astrea 9. Both the Class A-1 and Class A-2 Bonds have a final maturity of 15 years on Aug 8, 2040. However, the bonds can be redeemed at the end of five years on the scheduled call date, which falls on Aug 8, 2030. The public offer for Astrea 9 closes on Aug 6 at noon and the bonds are expected to be issued on Aug 8. The Class A-1 bonds and Class A-2 bonds are expected to list and start trading on the mainboard of the SGX on Aug 11.
Business Times
30-07-2025
- Business
- Business Times
Astrea 9 PE-backed bonds offer attractive yields for retail investors
[SINGAPORE] Investors hungry for a yield asset with a stable return profile have a chance to invest in the latest issuance of private equity (PE)-backed bonds. Astrea 9 bonds, the latest offering by Azalea Investment Management, will open for retail subscription on Thursday (Jul 31). The public may subscribe for S$380 million worth of the highest-rated Singapore dollar Class A-1 bonds, with a fixed coupon of 3.4 per cent a year. Another US$50 million worth of Class A-2 US dollar bonds are also open for subscription, with a fixed coupon of 5.7 per cent a year. Astrea 9's retail portion is the largest to date of the five previous Astrea issuances. In response to growing public demand, fund manager Azalea Investment Management raised the amount available for public subscription by 37 per cent compared to Astrea 8. 'We're pleased to return with a much larger retail tranche in Astrea 9 to support increased investor demand for suitable and resilient investment products,' said Chue En Yaw, chief executive officer and chief investment officer of Azalea. 'We remain committed to playing a meaningful role in shaping the financial futures of investors in Singapore and to empowering them with an investment option in an asset class traditionally reserved for institutions and high-net-worth individuals.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Azalea Group is a subsidiary of Seviora Holdings, which is in turn owned by Temasek. Azalea's mission is to democratise access to the PE asset class among retail investors. The Astrea bond issuance programme is designed with safeguards to prioritise the payment of coupon and principal for retail tranches, including a reserve account to set aside cash to redeem the bonds, and a liquidity facility to fund expenses. The Astrea platform has built a track record to date of full redemptions for three previous issuances and a history of ratings upgrades. Astrea 9's public offer follows the successful placement of S$235 million of Class A-1 bonds, US$150 million of Class A-2 bonds and US$100 million of Class B 'Payment in Kind' (PIK) bonds to institutional and accredited investors, which concluded on Wednesday. Azalea said demand was strong across all classes from high-quality institutions such as endowments, insurance companies, corporates and asset managers. Allocations to the institutions accounted for close to 60 per cent of the investor base for the placement. The combined placement order book of close to S$2 billion represents a 3.6 times subscription rate. The latest issuance is backed by cash flows from a portfolio of 40 PE funds managed by 31 reputable managers, valued at around US$1.62 billion. It provides exposure to more than 1,000 companies diversified across vintages, sectors and geographies. The portfolio has a weighted average age of five to six years. Justin Keh, Azalea's managing director for investment, noted that this is at the point of a PE fund's 'J-curve' 'when funds exit the investment period and enter the monetisation phase'. 'We expect the portfolio to be highly cash-generative during the life of the bonds, he added. This marks the first time that Astrea featured a subordinated tranche of Class B PIK bonds, which will earn an interest rate of 7.35 per cent per annum, to be accrued every six months. With PIK bonds, the accrued interest payable at the end of each distribution period is added to the original principal and forms part of the principal amount, compounded over time. Class A-1 and A-2 bonds are expected to be rated investment grade by Fitch, at A+sf and Asf, respectively. Class B bonds are expected to be rated BBBsf. Class A-1 and A-2 bonds have final maturity of 15 years, with a mandatory call at the end of five years on Aug 8, 2030, subject to the fulfilment of certain conditions. Class B PIK bonds do not have a scheduled call date, but redemption can begin following the full redemption of Class A-1 and A-2 bonds. The coupon rates, determined through a competitive book-building process among institutional investors, are regarded as competitive relative to similarly rated bonds. Interest rates have been declining for lower-risk options such as six-month Treasury bills (T-bills), where the latest cut-off yield was 1.79 per cent , compared to 2 per cent in June. The Jul 1 issuance of the Singapore Savings Bond (SSB) carries an average annual interest rate of 2.49 per cent over 10 years. Speaking on Class A-1 bonds, Elayne Ho, Standard Chartered Bank's executive director of capital markets, said: 'Institutional investors are going to look at where other Temasek-linked, single-A rated issuances are trading – currently at sub-3 per cent.' Retail investors, she added, will also look at T-bills and fixed-deposit rates, and in this context the Class A-1 bonds' 3.4 per cent rate is 'pretty compelling'. Class A-2 US dollar bonds, at 5.7 per cent, also '(stack) up as fair in comparison to senior A-rated bonds', Ho noted. 'And when we also look at subordinated Tier-2 capital (bonds), which are trading at low- to mid-5 per cent, they are lower than Class A-2 bonds.' Colin Low, portfolio manager of the Bondsupermart's global fixed-income team, also believes Astrea 9 is attractive across the three classes of bonds. 'Considering the declining yield in the SGD bond space, Class A-1 notes will be a good option to lock in above-3 per cent yield at a strong credit rating, and pocket around 160 basis points in yield pickup over the five-year Singapore Government Securities, without taking on significant credit risk,' he said. 'Class A-2 notes will also be a good option for investors looking for a durable USD income of around 5 to 6 per cent yield, over an intermediate period,' he added. 'Overall, we think the appeal of Class B PIK notes comes from the high 7.35 per cent yield which provides interest similar to that of high-yield bonds. This gives investors the opportunity to augment the yield of their bond portfolio, without taking on significant credit risk, as compared to investing in a high-yield bond.' Low also said Azalea's strong track record of redeeming past issuances provides some reassurance, 'despite no maturity 'floor' and a lengthy tenor'. 'We find the Class B PIK notes more suitable for investors with a greater risk appetite who are looking for higher yields, and/or those who are comfortable being 'locked in', without actual income for several years.' The public offer will open at 9 am on Thursday, and close at 12 pm on Aug 6. Astrea 9 bonds are expected to be issued on Aug 8. Trading of Class A-1 and A-2 bonds is expected to start on Aug 11.
Daily Record
26-06-2025
- Entertainment
- Daily Record
The luxurious Scottish castle offering visitors a Highland Cow safari this summer
The historic castle has been visited by celebrities like Gok Wan and Gordon Ramsay and featured on TV A luxurious estate on the Ayrshire coast is offering something a little different this summer, complete with Highland cow safaris, homemade traybakes, and countryside charm. Glenapp Castle, located near Girvan, is inviting visitors to enjoy its new Summer Special package, blending Scottish heritage, outdoor adventure and fine dining for a getaway to remember. The historic castle, which has hosted famous faces including Gok Wan and Gordon Ramsay, has featured on shows such as Good Morning Britain and Gordon Ramsay's Future Food Stars. Now it's inviting day-trippers and weekenders to enjoy a distinctly Scottish adventure through its new Summer Special package. With longer days, warmer weather and a rise in last-minute bookings, Glenapp's offering includes a quirky countryside highlight: a private Highland cow safari known as 'Glenapp's Private Coos and Ewes'. The tour gives guests an up-close introduction to Scotland's beloved Highland cows through an exclusive experience in partnership with Kitchen Coos and Ewes, Glasgow Live reports. The gentle giants, affectionately known as 'moodles', each have their own story, including one herd member with a budding modelling career. Guests will not only learn about the social structure and charm of these iconic animals but will also meet tour hosts Janet and Neale, whose 108 combined years of farm life add a warm, personal touch to the journey. The visit ends with Janet's freshly baked traybakes, served with tea and coffee straight from the farmhouse kitchen. To top it all off, guests take home a goody bag filled with Highland coo-themed souvenirs. Back at the castle, guests can unwind at the Azalea restaurant, located inside Glenapp's Victorian Glasshouse, where afternoon tea is served in stunning surroundings. The Summer Special package also includes two nights in one of Glenapp's luxurious Castle Bedroom Suites, along with a complimentary archery lesson, use of the tennis court, croquet lawn, boules, and access to electric and mountain bikes for exploring the estate's 110 acres of gardens and grounds. Dinner is served each night in either the grand Castle Dining Room or the newly launched Azalea restaurant, with a three-course meal included as part of the package. The Glenapp Castle Summer Special is priced from £312.50 per person per night. The Private Coos and Ewes safari experience can be added for £290 for one to four guests, with a £45 charge for each additional person. For more details or to book, visit Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'. If you're curious, you can read our Privacy Notice. If you'd prefer to experience the cow safari independently, Kitchen Coos and Ewes offers a variety of tours throughout the season, with different packages available via their website. Travellers planning a longer stay in the area can also explore holiday cottage options in Girvan or nearby Ballantrae. Properties available this summer include Cairnhill and Ailsa View via Sykes Holiday Cottages, the charming Professor's Cottage listed on and a range of Airbnb stays. The idyllic Ailsa Shores, available through TripAdvisor, is also an option for those looking to turn a short visit into a scenic summer mini-break.
