SINGAPORE - A unit of Singapore state investor Temasek Holdings issued on Wednesday US$510 million (S$685 million) worth of bonds backed by cash flows from 34 private equity funds.
The bonds, which were subscribed more than eight times, were aimed at tapping investors in private equity beyond the traditional base of a select group of wealthy individuals.
Demand came mainly from institutional investors, including insurance companies, endowment funds and foundations, according to Azalea Asset Management, a wholly-owned subsidiary of Temasek.
About a third of the bonds were allocated to individual investors. "We are actively exploring suitable opportunities for retail investors to participate in private equity-based products in the future," said Azalea Chief Executive Officer Margaret Lui said in a statement.
On offer was a Singapore-dollar denominated bond with an interest rate of 3.90 per cent and a scheduled maturity of three years, a US dollar bond with a scheduled maturity of five years and interest rate of 4.65 per cent, and two other US dollar bonds with 10-year maturities and rates of 6.50 per cent and 9.25 per cent, respectively.
All tranches have legal final maturities of 10 years. The first two bonds can be called after three- and five-years.
Credit Suisse and DBS Bank were lead managers for the bond offerings, while PJT Partners LP/Park Hill Group LLC was the financial and structuring adviser.