Astrea III is the first listed bond in Singapore backed by cash flows from Private Equity ("PE") Funds. 

It was recognised in 2016 by leading financial publications for: 

The transaction summary below has been simplified for a basic understanding of the transaction. For full details of the transaction, please refer to the Information Memorandum

Bonds Issued

  • Astrea III has assets in 34 PE Funds with a total value of US$1.1 bn
  • Four Classes of Notes ("PE bonds") totaling US$510 mm were issued to investors
  • Each Class of PE bonds caters to investors with different risk preferences and investment horizons

 

In the Astrea III transaction, four classes of bonds totalling US$510 mm were issued to investors


Portfolio and Capital Structure

At launch, the Transaction was significantly over-collateralised, where the debt issued was less than 45% of the portfolio NAV.

Astrea III Capital Structure showing the Transaction's low LTV ratio


Ratings and Bond Characteristics

The bonds are rated by credit rating agencies Fitch Ratings ("Fitch") and Standard & Poor's Ratings Services ("S&P"), as shown below. 

Bond ClassesFitchS&P
Class A-1 A+sf1 A (sf)
Class A-2 Asf Not rated
Class B BBBsf Not rated
Class C Not Rated Not rated

1Rated Asf at launch, Class A-1 Notes were upgraded to A+sf by Fitch on 10 July 2017. Click here for the press release.

A copy of the Fitch and S&P pre-sale reports can be downloaded from their websites.

Class A-1 Bonds

  • Principal scheduled to be repaid at the end of three years
  • Pays a fixed interest of 3.90% p.a. every six months
  • Potential bonus of 0.3% of the principal at the end of three years if performance threshold is met
  • Interest rate to increase by 1.0% p.a. if principal is not repaid at the end of three years 

Class A-2 Bonds

  • Principal scheduled to be repaid at the end of five years
  • Pays a fixed interest of 4.65% p.a. every six months
  • Interest rate to increase by 1.0% p.a. if principal is not repaid at the end of five years 

Class B Bonds

  • Principal expected to be repaid after the redemption of Class A-2 bonds or earlier if certain conditions are met 
  • Pays a fixed interest of 6.50% p.a. every six months

Class C Bonds

  • Does not pay cash interest every six months
  • Interest of 9.25% p.a. is compounded (added to principal) every six months and paid upon redemption of the bonds ("Paid-in-kind" or "PIK")
  • 5.0% sharing in cash flows after Sponsor return threshold is met

 

Summary of Bond Characteristics

 Bond ClassesRatings
(Fitch/S&P)
Interest Rate
(per annum)

Interest Rate Step-Up 
(per annum)

Scheduled Maturity DateFinal Maturity DateRedemption Premium
Class A-1 Bonds Asf / A (sf) 3.90%   1.0% 8 July 2019 8 July 2026 0.3% of Class A-1 principal amount 
Class A-2 Bonds Asf / Not rated 4.65%   1.0% 8 July 2021 8 July 2026 N/A
Class B Bonds BBBsf / Not rated 6.50%  N/A  N/A 8 July 2026 N/A
Class C Bonds Not rated 9.25% PIK  N/A  N/A 8 July 2026 5.0% of cash flows

Cash Flow Overview

The structure is backed by cash flows generated from the underlying Funds. At each distribution date, which occurs every six months, net cash flows from the Funds will be distributed up to the two Asset Owning Companies ("AOCs") before their distribution to the Issuer, Astrea III Pte. Ltd.. The cash will be used to cover expenses and other payments as well as to pay for the interest and principal on the bonds issued according to the priority of payments.

Astrea III Cash Flow Overview for distributions from underlying private equity funds


Astrea III Transaction Portfolio

At launch, the well-diversified portfolio of 34 Funds was managed by 26 different Fund Managers and held 592 underlying companies. 

Portfolio Summary as of 31 March, 2016

US$ mm
Number of PE Funds 34 NAV 1,141.6
Number of GPs 26 Undrawn Capital Commitments 201.4
Number of Investee Companies 592 Total Exposure 1,343.0
Weighted-Average Vintage
(by Total Exposure)
2009 Capital Commitments 1,557.3
Range of Vintage Years 2004-2013

Portfolio Composition

Portfolio by Fund Strategy
Astrea III Portfolio Breakdown by Fund Strategy

Portfolio by Fund Region
Astrea III Portfolio Breakdown by Fund Region

Portfolio by Sector
Astrea III Portfolio Breakdown by Sector

Portfolio by Vintage
Astrea III Portfolio Breakdown by Fund Vintage

For more information on the Astrea III Transaction, refer to the Information Memorandum