SIA issue 500M 10 year bond (good investment for lower risk)

gemini2000 LV7

2010-09-22 · 729 阅读

RETAIL investors can trade in corporate bonds in smaller denominations from Oct 1, the Singapore Exchange (SGX) announced on Tuesday.

The first bond, which will be traded in lots of $1,000 instead of the usual $250,000, will be offered by national carrier Singapore Airlines (SIA).

Retail investors can subscribe to the bonds at ATMs belonging to DBS Bank, POSB, OCBC Bank and United Overseas Bank, from today to next Tuesday.

SIA has initially set aside $50 million of its $300 million bond offering to retail investors. But this can be upsized to $100 million to satisfy any excess demand from them.

What also makes the SIA bonds attractive is that they will be listed on the Singapore Exchange. This will give an investor the option to sell the bonds via his broker if he needs cash urgently.

With the bond issue, SIA offers retail investors with an attractive alternative to park their spare cash, paying them an interest rate of 2.5 per cent a year over the next five years. This is well above the 0.125 per cent savings rate currently offered by POSB for deposits of up to $50,000.

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