Singapore Savings Bond sees higher demand in fourth issue

Singapore Savings Bond sees higher demand in fourth issue

For 2016, Monetary Authority of Singapore will offer up to S$4 billion worth of Savings Bonds, with a new issue every month.

By Linette Lim
Posted 29 Dec 2015 17:16 Updated 29 Dec 2015 19:13

SINGAPORE: A total of S$43.96 million worth of applications were accepted for the fourth tranche of the Singapore Savings Bond, up from S$40.99 million in the previous tranche, said the Monetary Authority of Singapore (MAS) on Tuesday (Dec 29).

The bonds, which will be issued on Jan 4, will pay a coupon of 1.21 per cent in the first year, stepping up every year so that those who hold the bond for the maximum 10-year tenure can earn an average interest of 2.58 per cent per annum.

The Monetary Authority of Singapore (MAS) had set a maximum allotment of S$300 million for the bond to be issued in January.

The Singapore Savings Bonds programme was announced in March by Senior Minister of State Josephine Teo, with the aim of "providing individual investors with a long-term savings option that offers safe returns".

For 2016, MAS will offer up to S$4 billion worth of Savings Bonds, with a new issue every month. Only individuals can apply for the bonds, which are fully backed by the Government. People can invest the minimum sum of S$500 and in subsequent multiples of S$500, up to a maximum of S$50,000 in any single issue, and up to $100,000 in total.

The funds can be redeemed early on a monthly basis without penalty.

- CNA/xk

- wong chee tat :)