Stocks are great investment vehicles for your retirement portfolio.
However, some investors see a need to diversify their portfolios by taking on different asset classes.
Bonds are a suitable alternative to stocks.
Frasers Property Limited (SGX: TQ5), or FPL, recently launched Singapore’s first corporate green retail bonds.
This issuance is in line with the group’s goal of financing the majority of its sustainable property assets with green financing by 2024.
The notes saw an enthusiastic response – the public offer was 1.48 times subscribed while the initial placement tranche was 2.04 times subscribed.
Following strong demand, FPL upsized its offer from S$420 million to S$500 million.
With such a healthy take-up rate, are these bonds a buy?
Details of the bond
FPL is issuing five-year notes due 2027 that will carry an interest rate of 4.49% per annum.
These notes are issued under FPL’s wholly-owned subsidiary Frasers Property Treasury Pte Ltd under its S$5 billion multicurrency debt issuance programme....
