There’s been a slew of news and updates regarding the Astrea bonds in the last week.
Temasek-linked PE vehicle Astrea V to issue US$600m bondsClass A-1 tranche is expected to be rated Asf and A+ (sf) by Fitch and S&P respectively, with the “sf” suffix referring to structured financial instrument.
Class A-2 bonds are expected to raise US$230 million – also scheduled to be redeemed at the end of the fifth year, while Class B, US$140 million. Both classes would be available to accredited investors and institutions only.
Similar to Astrea IV bond, this issue has structural safeguards in place, including a reserve account that builds up cash to redeem the tranches.
The underlying portfolio is valued at US$1.3 billion and is invested in 38 funds managed by 32 PE managers, giving exposure to some 860 companies in various industries including IT, consumer discretionary, financials, industrials, healthcare and communication
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