The upcoming Astrea IV retail bonds issued by Temasek subsidiary, Azalea Group, have been the talk of town. It’s the first time retail investors have had the opportunity to be exposed to private equity bonds in Singapore. It was placed in the limelight especially after Temasek CEO, Ho Ching, commented that it can be used to supplement one’s retirement portfolio.

Given that private equity investment opportunities are normally reserved for sophisticated investors, we were surprised that these bonds were accessible by the retail market. Although the prospectus tried hard to simplify the issuance, it is still quite a handful to digest.

We have decided to put forth a short explainer and some of our own thoughts regarding the Astrea IV bond issuance.

What is private equity?

Private equity is essentially a term to describe investments directly into companies that are not listed (i.e. not traded on the stock market).