Singapore to issue 4-billion-SGD savings bond in 2016

MAS' headquarters (Photo: businesstimes.com.sg)

 
Singapore (VNA) – The Monetary Authority of Singapore (MAS) has announced the issue of 4 billion SGD (2.85 billion USD) worth of savings bonds in 2016 on a monthly basis.

Up to 300 million SGD of bonds will be available in January, 2016 and individual investors can register during December, 2014, ending on December 28.

At a minimum investment of 500 SGD, the bond targets small retail investors.

Unlike regular bonds whose early redeeming is subject to fines, savings bond can be redeemed ahead of the 10-year term without any penalty.

The bond starts with a first-year coupon rate – or interest return – of 1.21 percent, which gradually rises overtime to reach the maximum of 2.58 percent a year.

MAS rolled out the product in last October as a safe, affordable and flexible option for the public to invest.

Since then, 710.9 million SGD has been mobilised thus far.-VNA