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New Bond Issue subscription
A bond classified as a New Bond Issue is a new primary market offering, where the bond is issued and offered to investors for the first time.
Corporate Bonds
a) Processing Fee - There is a processing fee of 0.35% based on nominal value, or subject to min SGD10 (or in its equivalent currency).
b) Platform Fee - 0.05% per quarter, calculated based on the average market value of your bond holdings in the preceding quarter.
Singapore Government Securities (SGS) / Singapore Treasury Bills (SG T-Bills)
a) Processing Fee - There is a processing fee of 0.1% based on nominal value, or subject to min SGD10 (or in its equivalent currency).
b) Platform Fee - 0.025% per quarter, calculated based on the average market value of your bond holdings in the preceding quarter.
Important: Please note that there will be a counterparty fee of 0.01% (1 bp) on the cut-off yield for SGS and SG T-Bills auctions, upon successful allocation. This fee will be reflected in the transacted bond price.
All fees quoted above are exclusive of GST.
a) Processing Fee - There is a processing fee of 0.35% based on nominal value, or subject to min SGD10 (or in its equivalent currency).
b) Platform Fee - 0.05% per quarter, calculated based on the average market value of your bond holdings in the preceding quarter.
Singapore Government Securities (SGS) / Singapore Treasury Bills (SG T-Bills)
a) Processing Fee - There is a processing fee of 0.1% based on nominal value, or subject to min SGD10 (or in its equivalent currency).
b) Platform Fee - 0.025% per quarter, calculated based on the average market value of your bond holdings in the preceding quarter.
Important: Please note that there will be a counterparty fee of 0.01% (1 bp) on the cut-off yield for SGS and SG T-Bills auctions, upon successful allocation. This fee will be reflected in the transacted bond price.
All fees quoted above are exclusive of GST.
Payments are not required upfront for New Bond Issue Subscription as allocation is not guaranteed.
However, you will be advised on the full payment amount upon successful allocation of the New Bond Issue. While the payment generally has to reach us within 3 business days (inclusive of the day which you are informed of your successful allocation), this is subjected to change depending on individual issuance. Please refer to the email notification for the actual date the payment is due.
Please note that we reserve the right to earmark your cash holdings to facilitate the subscription order on case-by-case basis.
In the event that payments are not made for New Bond Issue that is being allocated, such Bond will be sold in the secondary market at the prevailing price and any subsequent loss arises from such transaction will be recovered from you.
However, you will be advised on the full payment amount upon successful allocation of the New Bond Issue. While the payment generally has to reach us within 3 business days (inclusive of the day which you are informed of your successful allocation), this is subjected to change depending on individual issuance. Please refer to the email notification for the actual date the payment is due.
Please note that we reserve the right to earmark your cash holdings to facilitate the subscription order on case-by-case basis.
In the event that payments are not made for New Bond Issue that is being allocated, such Bond will be sold in the secondary market at the prevailing price and any subsequent loss arises from such transaction will be recovered from you.
New Bond Issues can be found and subscribe under Bonds > New Bonds / Upcoming Bonds.
New bond subscriptions are generally available for anyone who transact a minimum investment amount of at least SGD 200,000 (or its equivalent in foreign currency). However certain new bond issues are available to Accredited Investors (AIs) only.
Do note that investors will also need to fulfil the Minimum Investment Quantity (Nominal).
A bond classified as a Re-tap Bond is an additional debt issuance, which comes after the issue of a specific bond that is currently traded in the secondary market. This Re-tap Bond will be issued in a manner similar to a New Bond Issue, usually at a different price from the original offering. After issue, a Re-tap Bond will be equivalent to the ones already trading in the secondary market.
“Price Guidance” is an indicative yield per annum to an investor based on the expected issue price.
“Buy at Market” allows investors to subscribe for New Bond Issues at a yield that is determined by primary market supply and demand factors. If allocated, investors will receive these new bond issues a yield determined by market forces. For most New Bond Issues, this yield will be the same for all participants in a primary market offering.
“Buy at Limit Order” allows investors to subscribe for New Bond Issues by setting a minimum yield that the investor is comfortable to receive on the New Bond Issue, if allocated. If the eventual pricing of the bond results in a yield below the minimum yield required by the investor, the investor’s subscription will not be eligible.
“Buy at Market” allows investors to subscribe for New Bond Issues at a yield that is determined by primary market supply and demand factors. If allocated, investors will receive these new bond issues a yield determined by market forces. For most New Bond Issues, this yield will be the same for all participants in a primary market offering.
“Buy at Limit Order” allows investors to subscribe for New Bond Issues by setting a minimum yield that the investor is comfortable to receive on the New Bond Issue, if allocated. If the eventual pricing of the bond results in a yield below the minimum yield required by the investor, the investor’s subscription will not be eligible.
Once a New Bond Issue has been announced, it will be made available for subscription on FSMOne.
Subscription for a New Bond Issue will be available till the books are closed for further subscription.
A successful subscription is determined by your order type (subscribe at market or limit), and more importantly market supply and demand factors that can influence the eventual allocation result and pricing of a New Bond Issue.
Upon successful allocation of the New Bond Issue subscription, you will be advised on the needed payment amount via email.
Please take note that your new bond issue / auction allocations are NOT guaranteed. You may receive full, partial or nil allocations when you participate in new bond issue / auction with us.
Allocation result for SGS / SG T-Bills auctions may defer from the official allocation ratio provided by MAS.
Allocation result for SGS / SG T-Bills auctions may defer from the official allocation ratio provided by MAS.
Generally, book closes on the same day between 3-5pm (SG time). However this is subjected to changes depending on individual issuance. Please kindly contact our hotline to confirm the actual book subject timing.