Temasek’s indirect subsidiary Azalea has launched an Astrea 7 bond backed by 38 Private Equity (PE) funds. The size of the transaction is about $755mn or S$1.05bn, ~39.6% of its underlying PE portfolio valued at $1.9bn. The issuance is expected to have three classes of bonds, namely A-1, A-2 and B, but only Class A-1 and Class B bonds will be made available to retail investors. Below are further details:

  • Indicative size of Class A-1 bonds (lowest risk tranche) size is $335mn or S$462mn – S$277mn for the public offer and a placement of another S$185 million to institutions and other investors.
  • Indicative size of the Class A-2 bonds is $220mn. Like prior issues, there is a mandatory call back of the bonds after 5 years in 2027 and legal maturity of 10 years in 2032 for the Class A-1 and A-2 bonds.
  • Indicative size of Class B bonds (junior to classes A-1 and A-2 in terms of payment priority) is at $200mn. Half of this will be offered to the public while the remaining half will placed for institutions and other investors. These bonds have a scheduled call date after 6 years in May 2028 and will mature 10 years from now in May 2032.

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