Results of Auction of Taxable Book-Entry Singapore Government Bonds: NX15100Z (10Y)

SOURCE: THE MONETARY AUTHORITY OF SINGAPORE
Results of auction of taxable book-entry Singapore Government Bonds to be issued on 02 June 2015.

27 May 15

Tenor Approx. 10 Years
Total Amount Allotted SGD 2,600,000,000
Amount Allotted to NonCompetitive
Applications SGD 508,036,000
Amount Allotted to MAS SGD 300,000,000
Total Amount Applied SGD 4,080,150,000
Coupon Rate 2.375% p.a.
Cut-off Yield & Price 2.42% p.a. and 99.603%
Median Yield & Price 2.35% p.a. and 100.222%
Average Yield & Price 2.30% p.a. and 100.666%
% of Competitive Applications at Cut-off Allotted: Approximately 94%
% of Non-Competitive Applications Allotted: 100%
Issue Code NX15100Z
ISIN Code SG31A0000001
Maturity Date 01 June 2025

Applying for Singapore Savings Bonds

Source: Monetary Authority of Singapore Website

Singapore, 11 May 2015

The Monetary Authority of Singapore (MAS) today released more information on how investors can buy and redeem Singapore Savings Bonds.  MAS expects the first Savings Bond to be issued in the second half of 2015.  MAS will announce the programme launch date at least one month before applications for the first issuance open.

2   Savings Bonds are a new type of Singapore Government Securities (SGS) designed to offer individuals a long-term, flexible savings option with safe returns.  They will provide individuals with more options to save and invest to meet their long-term financial needs.

Getting started

3   To apply for Savings Bonds, individuals will need:

a. A bank account with one of the participating banks (currently DBS/POSB, OCBC or UOB1); and

b. An individual Central Depository (CDP) Securities account with direct crediting service (DCS).  DCS allows Savings Bond payments to be made directly to the individual’s DCS-linked bank account.  Individuals need to be at least 18 years old to open an individual CDP Securities account.  To find out how to open a CDP Securities account or activate DCS for an existing CDP Securities account, please refer to www.sgx.com/cdp/faq.

4   Individuals who wish to invest in Savings Bonds should ensure that they have the necessary bank and CDP accounts over the next few months before the Savings Bonds are launched.

Application and redemption periods

5   A new Savings Bond will be issued monthly.  Applications for each Savings Bond issue will open on the first business day of each month and close four business days before the end of the month.  Requests to redeem existing bonds can be made during the same period.

6   All application and redemption requests will be processed three business days before month’s end.  Savings Bonds will be issued on the first business day of the next month and redemption proceeds will be processed by the second business day.

Applying for and redeeming Savings Bonds

7   Individuals will be able to apply for and redeem Savings Bonds through DBS/POSB, OCBC or UOB ATMs; or via DBS/POSB internet banking channels.  Bank charges may apply.  Applications and redemption requests must be made in multiples of $500, and Savings Bonds will only be available for purchase using cash.

8   Individuals will be able to apply for each Savings Bond issue with as little as $500, and up to $50,000.  In addition, individuals will be able to hold up to $100,000 of Savings Bonds at any point in time.  This will meet the needs of the vast majority as more than 90% of individual bank deposit accounts have balances of $100,000 or lower.

Allocation of Savings Bond

9   MAS will announce the issuance size for each Savings Bond issue before application opens.  Should the total demand for Savings Bonds exceed the amount on offer in a particular month, MAS will allocate the bonds so as to maximise the number of successful applicants.  (Please refer to this Application Factsheet for more information on the allotment process.)  Individuals who do not receive their full allotment may wish to apply for the next issue.

Learning more about Savings Bonds

10   Investors should consider all the features of Savings Bonds before making their applications.  To help investors understand the features of the Savings Bonds, MAS will set up a dedicated Savings Bonds website and a public hotline for enquiries ahead of the launch of the programme.  In the meantime, individuals may refer to this set of frequently asked questions (FAQs) on Savings Bonds.

1 More banks may participate in the Savings Bond programme later.

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