Over $784 million in valid applications were received in the retail tranche of the Astrea VI Bond. 

This translates to 25,511 applications and a subscription rate of 3.1 times, issuer Azalea Investment Management announced on Mar 17. 

These Bonds will be issued to retail investors on Mar 18.

The Astrea Private Equity Bonds “are investment grade bonds which provide regular income and exposure to private equity at the same time,” notes Margaret Lui, CEO of Azalea.

These bonds “give retail investors an opportunity to invest for their future,” she adds.

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Under the retail tranche, $250 million of Astrea VI Class A-1 Bonds were offered at a fixed interest rate of 3% per annum.

This follows the successful placement of $132 million of Class A-1 Bonds, US$228 million ($307.2 million) of Class A-2 Bonds and US$130 million of Class B Bonds to institutional and accredited investors.

The interest rates of Class A-2 Bonds are at 3.25% per annum, while that for Class B Bonds is 4.35%.

Collectively, Azalea has received US$3.8 billion in subscriptions across the three classes. This represents a subscription rate of 5.9 times the US$643 million in total of the Bonds on offer.

Distribution of the Bonds were diversified amongst high quality institutions (48%), accredited investors (23%) and retail investors (29%).

Going forward, Lui says that Azalea “hopes to be able to offer opportunities for retail investors to invest in the higher risk but higher returning classes of Astrea bonds or equity-like securities.”

See: Astrea VI Private Equity Bonds opens retail tranche; strong demand expected