The Housing and Development Board has launched a new issuance of Notes under its $7 billion Medium Term Note Programme.

This comprises a $500 million, 3-year Fixed Rate Note issue with a coupon of 1.55% per annum payable semi-annually in arrears. The transaction was launched at an initial issue size of $400 million and subsequently increased to $500 million due to strong investor demand.

The notes will be issued in denominations of $250,000. These will be offered by way of placement to investors who fall within Sections 274 and/or 275 of the Securities and Futures Act, Chapter 289 of Singapore.

Application is being made for the listing of the Notes on the Singapore Exchange Securities Trading Limited (SGX-ST). The Notes will be cleared through The Central Depository (Pte) Limited. The joint lead managers are Citicorp Investment Bank (Singapore) Limited and The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch.

Under HDB's MTN programme, HDB may from time to time, issue bonds (or notes) to finance its development programme and working capital requirements.