Temaseek to sell bonds

[Sk65]

nb.... 8B for admin costs... !!!

 

how to get in huh??? i dont mind quit my current senior exec position, wipe table or clean toliet bowl..maybe i earn double by doing this!!!

 

i think you can start by reading papers,

 

to know how to calculate the 8bil admin cost

 

 

[BanCoe]

Inputs  plz........ @angcheek askin' 

Latest tranche of Astrea PE bonds opens for public subscription

THE latest issuance of private equity-backed (PE) bonds by the Azalea Group opens for public subscription today, this time with a larger retail tranche to cater for an expected strong demand.

Astrea V PE Bonds are a US$600 million offering of three classes of bonds, with a structure very similar to Astrea IV last year. The bonds are backed by a US$1.3 billion portfolio of 38 PE funds.

Retail investors may subscribe for S$180 million worth of Class A-1 bonds, with a fixed coupon of 3.85 per cent. This is more than half of the total issuance of Class A-1 bonds of S$315 million. The balance is a placement tranche of S$135 million for institutions and accredited investors.

In a statement yesterday, Azalea said the placement tranche saw strong demand across all classes of bonds, with a combined placement orderbook in excess of US$3.4 billion equivalent from over 189 accounts. High quality institutions accounted for 70 per cent, including insurance companies, endowment funds and foundations. Accredited investors accounted for 30 per cent.

The Azalea group is a subsidiary of Temasek Holdings. Azalea holds more than US$4 billion worth of PE assets.

The public offer opens at 9am and closes at noon on June 18. The minimum subscription for A1 bonds is S$2,000.

Class A-1 bonds have a final maturity of 10 years and a mandatory call at the end of five years. The issuer is required to redeem the Class A-1 bonds on June 20, 2024, if there is sufficient cash set aside to repay Class A-1 bonds and other conditions are met. Otherwise the interest rate for Class A-1 bonds will have a one-time step-up of 1 per cent until the bonds are fully redeemed.

 

 

 

 

 

Edited June 12, 2019 by BanCoe

[boonhat_91]

 

Latest tranche of Astrea PE bonds opens for public subscription

 

 

Just for discussion:

 

 

Astrea V portfolio is 81% buyout funds. Is buyout as a fund strategy really sure huat?

 

OT comparison but I'm thinking of Gordon Ramsay Kitchen Nightmares. Not every restaurant takes off and becomes successful despite Ramsay intervention.

 

Secondly, is there really so many inefficient companies out there waiting for a buyout to turn them around?

[Sdf4786k]

So the suggestion is to not proceed ?

 

Or its too risky with too many doubts on its viability, as is the case of Hyflux.

 

I think they went big time with one of the hard disk company that went belly up many years back.

 

 

 

 

Edited June 13, 2019 by Sdf4786k

[Ika_tomas]

This guy has a few good writeups on the Astrea series.

https://financialhorse.com/astrea-v-debrief/
https://financialhorse.com/astrea-v-balloting-and-allocation-results/
https://financialhorse.com/astrea-v-2019/

Worth a read.
Gist of it, and I'd agree with this below

Quoted
"If offered this product now, would you invest? Well I absolutely will.

The thing about debt investing, is that you cannot think like an equity investor. The nature of the investment is fundamentally different.

When you’re investing in equity (like stocks), your potential upside is unlimited. If you invest in Tesla and the company does well, the sky is the limit as to returns. So when you invest in equity, you have to think about how well the company will be able to grow in future, because that determines your returns.

But when you’re investing in debt (like bonds), your upside is limited to the yield on your debt. No matter how well the company does, all you’re going to get paid is your yield. So when you invest in debt (like Astrea), you don’t really need to bother about how well the company can grow, all you care about is whether the bonds will default.

So yes, I agree that the Astrea bonds can be a way for Azalea to really juice their returns. They’re basically borrowing money from investors to invest in Private Equity. If they borrow from you at 3.85% and the PE Funds returns 15% a year, they’re just made a 10.15% return. But hey, what does it matter to you what Astrea does with the moneys?

Think about it this way. Imagine that a bank gives you a mortgage to buy a property at 2% a year for 10 years. After 5 years, the property goes up in value by 100%. Now the bank is upset, and complains that he should have a bigger share because the property went up in price. Really?

Debt investing is about creditworthiness. Full stop. Once you’ve determined the chance that the issuer will default, the next question is whether the yield is worth the risk. What the issuer decides to do with the money, is entirely up to them.

So all I’m saying, is that you should view the issues separately. Evaluate the risk of default of the bonds, based on the underlying PE assets, and securitisation structure. And the general consensus here, is that the chance of default is incredibly low. Once you know this, then decide whether the yield is worth it, for the risk you are taking on."

 

[Throttle2]

This guy has a few good writeups on the Astrea series.

 

https://financialhorse.com/astrea-v-debrief/

https://financialhorse.com/astrea-v-balloting-and-allocation-results/

https://financialhorse.com/astrea-v-2019/

 

Worth a read.

Gist of it, and I'd agree with this below

 

Quoted

"If offered this product now, would you invest? Well I absolutely will.

The thing about debt investing, is that you cannot think like an equity investor. The nature of the investment is fundamentally different.

When you’re investing in equity (like stocks), your potential upside is unlimited. If you invest in Tesla and the company does well, the sky is the limit as to returns. So when you invest in equity, you have to think about how well the company will be able to grow in future, because that determines your returns.

But when you’re investing in debt (like bonds), your upside is limited to the yield on your debt. No matter how well the company does, all you’re going to get paid is your yield. So when you invest in debt (like Astrea), you don’t really need to bother about how well the company can grow, all you care about is whether the bonds will default.

So yes, I agree that the Astrea bonds can be a way for Azalea to really juice their returns. They’re basically borrowing money from investors to invest in Private Equity. If they borrow from you at 3.85% and the PE Funds returns 15% a year, they’re just made a 10.15% return. But hey, what does it matter to you what Astrea does with the moneys?

Think about it this way. Imagine that a bank gives you a mortgage to buy a property at 2% a year for 10 years. After 5 years, the property goes up in value by 100%. Now the bank is upset, and complains that he should have a bigger share because the property went up in price. Really?

Debt investing is about creditworthiness. Full stop. Once you’ve determined the chance that the issuer will default, the next question is whether the yield is worth the risk. What the issuer decides to do with the money, is entirely up to them.

So all I’m saying, is that you should view the issues separately. Evaluate the risk of default of the bonds, based on the underlying PE assets, and securitisation structure. And the general consensus here, is that the chance of default is incredibly low. Once you know this, then decide whether the yield is worth it, for the risk you are taking on."

 

 

Pretty elementary stuff leh....

But i would disagree on 1 point.

I would want to know what the issuer or borrower is using the money for.

When you lend money to someone, you must know what he is using the money for

It allows you a better gauge of whether you can get the money back.

What the money is used for forms part of the risk of default

Edited July 1, 2019 by Throttle2

[BanCoe]

Another one ....

[BanCoe]

Yet another one again

https://www.businesstimes.com.sg/companies-markets/temasek-proposes-5-year-singapore-dollar-bonds-of-up-to-s350m

[Throttle2]

1 hour ago, BanCoe said:

Yet another one again

https://www.businesstimes.com.sg/companies-markets/temasek-proposes-5-year-singapore-dollar-bonds-of-up-to-s350m

$350mil only. Very small issue

[BanCoe]

19 hours ago, Throttle2 said:

$350mil only. Very small issue

Yea small tranche , cheap borrowing but as usual will be oversubscribed

[Throttle2]

1 hour ago, BanCoe said:

Yea small tranche , cheap borrowing but as usual will be oversubscribed

they are trying to soak up the money from retail folks. 
Which is win win i suppose.

They are know to have very average investment results in the long run which gives me the impression that there are a lot of JLB inside

[Throttle2]

Huat ah!