On March 8, I have alerted readers of the latest Astrea VI Bond issuance through my blog and Telegram Channel. Astrea has just announced its Astrea VI allocation result today. The final coupon for the retail S$ tranche is 3%. It is not fantastic, but good enough for many, especially the retirement income seekers. But many people have got it wrong during the application process.

I want to use this as a case study to give you a better understanding of how a Bond IPO and Private Placement works.

To recap, Astrea issued three classes of bonds.

  • S$ denominated Class A-1 Bonds – 3% coupon
  • US$ denominated Class A-2 Bonds – 3.25% coupon
  • US$ denominated Class B Bonds – 4.35% coupon

The USD bonds were offered to institutional and accredited investors, while retail investors can subscribe to the SGD bond.

Their Initial Price Guidance (IPG) was about 0.25% to 0.375% higher than the final