Daily roundup: New FairPrice Finest outlet featuring food hall opens in Sembawang — and other top stories today, Singapore News
1. Supermarket meets kopitiam: New FairPrice Finest outlet featuring food hall opens in Sembawang
Heading out for a grocery run could mean a whole different experience for Sembawang residents from now on. With the official opening of the FairPrice Finest outlet at Sembawang Shopping Centre on Thursday (May 22)... » READ MORE
2. Singapore keeps 2025 growth forecast at 0-2%, sees slight boost from US-China truce
The Ministry of Trade and Industry (MTI) has maintained Singapore's economic growth forecast for the year at a range of zero to two per cent, amid encouraging signs of de-escalation in global trade tensions... » READ MORE
3. 'Mixed emotions': Ministers Chan Chun Sing, Desmond Lee and Chee Hong Tat reflect on their Cabinet movements
Following Prime Minister Lawrence Wong's reshuffling of the Cabinet on Wednesday (May 21), Ministers Chan Chun Sing, Desmond Lee and Chee Hong Tat have expressed their thoughts regarding their movements... » READ MORE
4. ICA reviewing PR status of Ian Fang, Lev Panfilov following convictions for sexual offences
The Immigration and Checkpoints Authority (ICA) is reviewing the permanent resident (PR) statuses of actors Ian Fang and Lev Panfilov following their convictions for sexual offences... » READ MORE
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Business Times
22 minutes ago
- Business Times
Astrea 9 PE-backed bonds offer attractive yields for retail investors
[SINGAPORE] Investors hungry for a yield asset with a stable return profile have a chance to invest in the latest issuance of private equity (PE)-backed bonds. Astrea 9 bonds, the latest offering by Azalea Investment Management, will open for retail subscription on Thursday (Jul 31). The public may subscribe for S$380 million worth of the highest-rated Singapore dollar Class A-1 bonds, with a fixed coupon of 3.4 per cent a year. Another US$50 million worth of Class A-2 US dollar bonds are also open for subscription, with a fixed coupon of 5.7 per cent a year. Astrea 9's retail portion is the largest to date of the five previous Astrea issuances. In response to growing public demand, fund manager Azalea Investment Management raised the amount available for public subscription by 37 per cent compared to Astrea 8. 'We're pleased to return with a much larger retail tranche in Astrea 9 to support increased investor demand for suitable and resilient investment products,' said Chue En Yaw, chief executive officer and chief investment officer of Azalea. 'We remain committed to playing a meaningful role in shaping the financial futures of investors in Singapore and to empowering them with an investment option in an asset class traditionally reserved for institutions and high-net-worth individuals.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Azalea Group is a subsidiary of Seviora Holdings, which is in turn owned by Temasek. Azalea's mission is to democratise access to the PE asset class among retail investors. The Astrea bond issuance programme is designed with safeguards to prioritise the payment of coupon and principal for retail tranches, including a reserve account to set aside cash to redeem the bonds, and a liquidity facility to fund expenses. The Astrea platform has built a track record to date of full redemptions for three previous issuances and a history of ratings upgrades. Astrea 9's public offer follows the successful placement of S$235 million of Class A-1 bonds, US$150 million of Class A-2 bonds and US$100 million of Class B 'Payment in Kind' (PIK) bonds to institutional and accredited investors, which concluded on Wednesday. Azalea said demand was strong across all classes from high-quality institutions such as endowments, insurance companies, corporates and asset managers. Allocations to the institutions accounted for close to 60 per cent of the investor base for the placement. The combined placement order book of close to S$2 billion represents a 3.6 times subscription rate. The latest issuance is backed by cash flows from a portfolio of 40 PE funds managed by 31 reputable managers, valued at around US$1.62 billion. It provides exposure to more than 1,000 companies diversified across vintages, sectors and geographies. The portfolio has a weighted average age of five to six years. Justin Keh, Azalea's managing director for investment, noted that this is at the point of a PE fund's 'J-curve' 'when funds exit the investment period and enter the monetisation phase'. 'We expect the portfolio to be highly cash-generative during the life of the bonds, he added. This marks the first time that Astrea featured a subordinated tranche of Class B PIK bonds, which will earn an interest rate of 7.35 per cent per annum, to be accrued every six months. With PIK bonds, the accrued interest payable at the end of each distribution period is added to the original principal and forms part of the principal amount, compounded over time. Class A-1 and A-2 bonds are expected to be rated investment grade by Fitch, at A+sf and Asf, respectively. Class B bonds are expected to be rated BBBsf. Class A-1 and A-2 bonds have final maturity of 15 years, with a mandatory call at the end of five years on Aug 8, 2030, subject to the fulfilment of certain conditions. Class B PIK bonds do not have a scheduled call date, but redemption can begin following the full redemption of Class A-1 and A-2 bonds. The coupon rates, determined through a competitive book-building process among institutional investors, are regarded as competitive relative to similarly rated bonds. Interest rates have been declining for lower-risk options such as six-month Treasury bills (T-bills), where the latest cut-off yield was 1.79 per cent , compared to 2 per cent in June. The Jul 1 issuance of the Singapore Savings Bond (SSB) carries an average annual interest rate of 2.49 per cent over 10 years. Speaking on Class A-1 bonds, Elayne Ho, Standard Chartered Bank's executive director of capital markets, said: 'Institutional investors are going to look at where other Temasek-linked, single-A rated issuances are trading – currently at sub-3 per cent.' Retail investors, she added, will also look at T-bills and fixed-deposit rates, and in this context the Class A-1 bonds' 3.4 per cent rate is 'pretty compelling'. Class A-2 US dollar bonds, at 5.7 per cent, also '(stack) up as fair in comparison to senior A-rated bonds', Ho noted. 'And when we also look at subordinated Tier-2 capital (bonds), which are trading at low- to mid-5 per cent, they are lower than Class A-2 bonds.' Colin Low, portfolio manager of the Bondsupermart's global fixed-income team, also believes Astrea 9 is attractive across the three classes of bonds. 'Considering the declining yield in the SGD bond space, Class A-1 notes will be a good option to lock in above-3 per cent yield at a strong credit rating, and pocket around 160 basis points in yield pickup over the five-year Singapore Government Securities, without taking on significant credit risk,' he said. 'Class A-2 notes will also be a good option for investors looking for a durable USD income of around 5 to 6 per cent yield, over an intermediate period,' he added. 'Overall, we think the appeal of Class B PIK notes comes from the high 7.35 per cent yield which provides interest similar to that of high-yield bonds. This gives investors the opportunity to augment the yield of their bond portfolio, without taking on significant credit risk, as compared to investing in a high-yield bond.' Low also said Azalea's strong track record of redeeming past issuances provides some reassurance, 'despite no maturity 'floor' and a lengthy tenor'. 'We find the Class B PIK notes more suitable for investors with a greater risk appetite who are looking for higher yields, and/or those who are comfortable being 'locked in', without actual income for several years.' The public offer will open at 9 am on Thursday, and close at 12 pm on Aug 6. Astrea 9 bonds are expected to be issued on Aug 8. Trading of Class A-1 and A-2 bonds is expected to start on Aug 11.
Straits Times
an hour ago
- Straits Times
Singapore shares down for fourth session; STI dips 0.2%
Sign up now: Get ST's newsletters delivered to your inbox In Q2, total employment rose by 8,400, based on advance figures released by the Ministry of Manpower on July 30. SINGAPORE - Local stocks slipped for the fourth straight session on July 30, logging their longest losing streak in five weeks, as second-quarter employment growth slowed from the same period a year ago. In Q2, total employment rose by 8,400, based on advance figures released by the Ministry of Manpower on July 30. This is below the 11,300 increase in the year-ago quarter, as the ministry noted continued signs of softening in some outward-oriented sectors. DBS senior economist Chua Han Teng warned that labour market resilience may be tested in the second half of the year, as demand from trade-exposed sectors is likely to soften. In a separate announcement, the Monetary Authority of Singapore kept monetary policy settings unchanged at its quarterly policy meeting, after two consecutive quarters of easing. But the central bank cautioned that the momentum in global growth 'should moderate' over the rest of 2025, as front-loading activity dissipates and previously delayed tariffs are implemented. The benchmark Straits Times Index (STI) fell 0.2 per cent or 10 points to end at 4,219.41. Across the broader market, losers outnumbered gainers 342 to 222, with around 1.8 billion securities worth $2.1 billion changing hands. Singapore Airlines was the biggest decliner on the STI, falling almost 2 per cent or $0.14 to $6.90. Yangzijiang Shipbuilding was the top blue-chip gainer, climbing 3.6 per cent or $0.09 to $2.62. Top stories Swipe. Select. Stay informed. Singapore Water supply issues during Toa Payoh blaze affected firefighting operations; SCDF investigating Singapore MHA to support HSA's crackdown on Kpod abusers and help in treatment of offenders: Shanmugam Singapore Bukit Panjang LRT to shut on 2 Sundays to facilitate tests; some upgrading work nearing completion Singapore Jail, fine for man linked to case involving 3 bank accounts that received over $680m in total Singapore Provision shop owner who raped 11-year-old gets more than 14 years' jail Business S'pore's economic resilience will face headwinds in second half of 2025 from tariffs, trade conflicts: MAS Business S'pore's Q2 total employment rises but infocomm, professional services see more job cuts Singapore Fewer than 1 in 5 people noticed suspicious items during MHA's social experiments The trio of local banks closed mostly lower. DBS dropped 0.7 per cent or $0.34 to $48.26, while OCBC was flat at $17.04. UOB shed 0.8 per cent or $0.28 to finish at $36.52. Across Asia, markets were mixed as investors continued to watch developments in US-China trade discussions, after the world's two largest economies agreed to more talks to extend their trade truce.
CNA
an hour ago
- CNA
China says childcare subsidies to 'add new impetus' to economy
BEIJING: China said on Wednesday (Jul 30) that recently announced subsidies to support families with young children will provide a much-needed economic boost, as Beijing seeks to promote spending and avert a demographic crisis. Authorities in the world's second-largest economy on Monday declared the new nationwide policy, which offers parents the equivalent of around US$500 per child under the age of three per year. "The childcare subsidy system can directly increase people's cash income," Guo Yanhong, vice minister of China's National Health Commission (NHC), said at a press conference in Beijing on Wednesday. The measure "will better protect and improve people's livelihoods", Guo said. "At the same time, it will help promote a virtuous cycle of improving people's livelihoods and economic development, adding new impetus to the sustained and healthy development of the economy," she added. Chinese leaders have in recent years struggled to breathe life into the economy, beset by a yearslong property crisis that has spooked would-be homebuyers and dissuaded many people from having children. Beijing has since late last year introduced a series of aggressive pro-consumption policy measures - including key rate cuts and cancellations of certain restrictions on homebuying - but results have been limited. The slump comes as worrying demographic trends have become more pronounced. China's population declined by 1.39 million last year, and marriage rates now sit at record lows. At Wednesday's press conference in Beijing, NHC official Wang Haidong acknowledged that the country has "gradually shifted from a phase of population growth to a phase of population decline". "To adapt to this new demographic landscape, the country is accelerating the improvement of its fertility support policy system, continuously reducing burdens on families of childbirth, raising children and educating them," said Wang. This, added Wang, would help in "promoting the construction of a fertility-friendly society". Zichun Huang, China economist at Capital Economics, told AFP this week that the sum of US$500 per child was too small to have a "near-term impact on the birth rate or consumption", but the policy could lay the groundwork for further child subsidies in the future. A finance ministry official said 90 billion yuan (US$12.5 billion) had been set aside as a preliminary budget for the new scheme this year. Also on Wednesday, China's top leaders gathered for a meeting on the economy chaired by President Xi Jinping, state media reported.
