Wolf Money(Astrea 7 Bonds IPO)

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A quick note on Astrea 7 bonds. There are two tranches of the Astrea 7 bonds for retail subscription.

1.) Class A-1 rated Singapore dollar bond which pays a coupon rate of 4.125%

2.) Class B rated US dollar bond which pays a coupon rate of 6%

Both bonds will have a step up interest of 1% after 5 years if the issuer decide not to call back the bonds.

I find the Astrea 4.125% Singapore dollars bonds attractive for a stag(apply ipo and sell on first bell). The yield on a 5 years SGS bond are at 2.57% and 2.73% on a 10 years SGS bond. My guess it is likely to trade above par of $1.02-1.03. Stag for some ramen. I wouldn’t be holding the bond due to the fast rising interest environment.


I am avoiding the USD bond due to currency risk and credit risk given Class B is close to junk status where credit risk are higher. Class A-1 bond holders will have priority over the cash flow from portfolio companies in the bond over the Class B tranche. Interest for both bonds will be paid semi annually. Application below 50k will get some confirm allocation. How much? No idea 🤷‍♂️ 

Closing date for the ipo is on 12 noon, 25th May 2022. Trading of the bonds will be on 9am, 30th May 2022

For more information please visit Astrea website.

https://www.azalea.com.sg/storage/app/media/reports/Prospectus/astrea-7-pte-ltd-prospectus-19-may-2022.pdf


*Personal opinion not amount to personal advise, do take it with a pinch of salt,do your own research.


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Disclaimers 

All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for education only. Buyer beware,do you own due diligence.


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