Third tranche of Singapore Savings Bond will be issued on Dec 1

November 2, 2015 | By | Reply More

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SINGAPORE: The third tranche of the Singapore Savings Bond will be issued on Dec 1 and retail investors will be able to apply for them from Monday evening (Nov 2).

According to the Monetary Authority of Singapore (MAS), those holding the bonds for the full 10 years will earn an average interest rate per annum of 2.44 per cent. This is lower than the 2.78 per cent for the second issue of the Singapore Savings Bond.

For this tranche, MAS will make up to S$1.2 billion worth of bonds available. Applications will close on Nov 25.

MAS has said that a new Singapore Savings Bond will be issued every month for at least the next five years, and that a maximum S$4 billion worth of bonds will be made available for this year.

The interest rates of each Savings Bond issue are based on the average Singapore Government Securities (SGS) yields the month before applications for that issue open. Holders of these bonds receive less interest at the start, but the interest increases over time.

The second issue of the SSB closed with only about 20 per cent allocated to investors – lower than the one-third allocation rate in the first issue. This was possibly due to a lack of awareness about the scheme among target investors, said analysts.

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