Posted inRegulation

Singapore widens retail investor bond access

Retail investors are now able to invest in a suite of bonds previously closed to them after the Singapore Exchange introduced a new “bond seasoning framework”.

The framework will enable retail investors to buy wholesale bonds initially offered to institutions and accredited investors, in denominations as small as S$1,000 ($720) six months after the bonds are listed on the Singapore Exchange.  

These bonds will be offered by issuers which meet minimum criteria relating to their size, track record and listing history.

The SGX currently lists 1,900 wholesale bonds, which are only available in large denominations of at least S$200,000, and they are offered to institutions or accredited investors. 

“Retail investors are greatly interested in fixed income investments,” said Loh Boon Chye, CEO of SGX, in a statement. “The framework will widen the range of fixed income products and enable retail investors to access some of the 1,900 wholesale bonds listed on SGX. Issuers too will gain from a bigger pool of investors. This initiative advances SGX’s efforts to build a dynamic and thriving fixed income market in Singapore.” 

Separately, the Monetary Authority of Singapore also announced an exempt bond issuer framework.

Under this framework, issuers that satisfy thresholds relating to their track record that are higher than the eligibility criteria under the seasoning framework can offer bonds directly to retail investors at the onset without a prospectus.

MAS officials were contacted but declined further comment.

Part of the Mark Allen Group.