Azalea Investment Management has announced the full redemption of Astrea V Class A-1 Bonds. These bonds were Singapore’s second listed retail private equity (PE) bonds. The Class A-1 Bonds are redeemed on June 20, 2024 on the scheduled call date, five years from its issuance in 2019.
In addition to receiving the principal amounts, Class A-1 Bondholders also received a bonus redemption premium of 0.5% of the principal amount. This premium was paid because the performance threshold was met when the sponsor received cumulative cashflow exceeding 50% of its equity in the transaction, thus allowing the bonus redemption premium to be paid at redemption.
The Astrea V Class A-2 Bonds that were placed to institutions and accredited investors were also fully redeemed while 58% of the Class B Bonds were partially redeemed. Class B Bonds will be further amortised in subsequent periods, in accordance with the prescribed priority of payments.
Margaret Lui, CEO of Azalea, says: “We are pleased with the successful redemption of the Astrea V Class A-1 Bonds on its five-year scheduled call date. Along with timely redemptions of previous series of Astrea PE Bonds, this milestone is testament to the robust structure and consistent performance of the Astrea portfolios. We thank investors for their trust and support in the Astrea platform and remain focused on our commitment to deepening the retail bond market in Singapore.”
Since Azalea’s first issuance of the Astrea PE Bonds in 2016, Astrea III and Astrea IV have since been redeemed. Besides Astrea V, two other series of Astreas are outstanding. In the latest issuance, Astrea 7, in addition to the SGD-denominated Class A-1 Bonds, the USD-denominated Bonds were also made available to retail investors in Singapore for the first time.
