Why I like Astrea IV Class A-1 Retail 4.35% retail bond:
- Indirectly wholly-owned by Temasek Holdings. Bondholders are ranked higher than equity holders.
- Secured bond. Most secured bonds have typically much lower coupons.
- Risks are diversified across 596 companies.
- Beneficial structured safeguards for bondholders
How to apply
- Login to DBS iBanking portal.
- In “Invest” menu, select “Electronic Shares Applications (ESA)”
- Make declaration and select Country of Residence
- Select “ASTREAIV”
- Acknowledge agreement
- Ensure that correct CDP account number is displayed.
- Put in the quantities of units. If you want $100,000 worth of bonds, put in 100,000 units. Consider putting in 101,000 units instead of 100,000 to hopefully stand a better chance.
- Cost is $2 admin fee to DBS.
- Cannot buy using CPF and SRS.
- Bond can be transferred into Maybank Kim Eng Fixed Income margin account as Grade A securities to be used as collateral to buy additional bonds.
Will I be applying?
Yes, of course. I have taken part in every retail bond IPO except for Aspial bonds. In my personal opinion, the first day trading on 18 June is likely trade above $1.00 because of the huge demand for the institutional tranche of Class A-1.
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