HDB Launches Medium Term Note Programme

The Housing and Development Board (HDB) has introduced a new development under a $7 billion Medium Term Note Programme.

The new issuance of Notes includes a 3-year Fixed Rate Note worth $500 million, with 1.55% coupon per annum. This must be paid semi-annually in arrears. The said transaction was launched with an initial size of $400 million and consequently expanded to $500 million due to warm investor response.

The notes will be given in $250,000 denominations. These will be offered to the investors who qualify under the Chapter 289, Sections 274 and/or 275 of Singapore’s Securities and Futures Act.

Application for the Medium Term Note Programme is made through the Singapore Exchange Securities Trading Limited (SGX-ST). Then, the Central Depository (Pte) Limited will clear the notes. The lead managers are the Hongkong and Shanghai Banking Corporation Limited, Singapore Branch and the Citicorp Investment Bank (Singapore) Limited.

Under the Medium Term Note Programme, HDB will occasionally, issue notes or bonds to finance its working capital requirements and development programmes.