Temasek-backed Azalea Investment Management has launched Astrea 7 retail bonds for public subscription in Singapore. The private-equity offering comprises S$280 million (US$202 million) of Class A-1 bonds at a fixed interest rate of 4.125% per annum, and US$100 million of Class B bonds at a fixed interest rate of 6% per annum.

The public offer follows the successful placement of S$246 million of the Class A-1 bonds, US$175 million of the Class A-2 bonds and US$100 million of the Class B bonds to institutional investors and accredited investors.

The placement tranche was more than 3x subscribed with a combined orderbook of US$1.5 billion equivalent from 55 accounts. High-quality institutions, including insurance companies, asset managers, endowments and foundations, made up about 60% of the investor base, with the remaining distributed to accredited investors.

Azalea chief executive officer Margaret Lui comments: “We are delighted to be returning with another series of Astrea PE bonds, with Class B bonds being made available to retail investors in Singapore for the first time. Both Class A-1 bonds and Class B bonds offer retail investors an opportunity to invest in investment-grade bonds that provide private equity exposure and regular income.”

Chief investment officer Chue En Yaw adds: “The Astrea 7 PE bonds are backed by cash flows from a US$1.9 billion portfolio of investments in 38 private equity funds that are managed by 29 reputable managers. Astrea 7’s diversified portfolio provides exposure to 982 companies at launch across a broad range of industry sectors.”

The public offer opens at 9am on May 20 and closes at 12 noon on May 25. The Class A-1 bonds and Class B bonds are expected to list and start trading on the mainboard of the Singapore Exchange on May 30 in board lot sizes of S$1,000 and US$1,000, respectively.