HDB issues $600mil fixed rate notes

December 4, 2020

Singapore banks received over 17,000 home deferment applications

Rated by AAA Fitch Ratings, the notes come in $250,000 denominations, with a coupon of 1.3% per annum payable semi-annually in arrear. They are set to mature on 3 December 2035.

The Housing and Development Board (HDB) on Thursday (3 December) issued $600 million, 15-year fixed rate notes as part of its $32 billion Multicurrency Medium Term Note (MTN) Programme.

Rated by AAA Fitch Ratings, the notes come in $250,000 denominations, with a coupon of 1.3% per annum payable semi-annually in arrear. They are set to mature on 3 December 2035.

HDB said the notes “were offered by way of placement to investors pursuant to Sections 274 and 275 of the Securities and Futures Act and (where applicable) Regulation 3 of the Securities and Futures (Classes of Investors) Regulations 2018”.

Recommended article: HDB Loan Eligibility: What HDB Flat Buyers Need to Know

Although approval in principle for the notes’ listing on the Singapore Exchange Securities Trading Limited (SGX-ST) has been obtained, their admission to the official list should “not be taken as an indication of the merits of HDB, its subsidiaries or the notes”. 

The notes are cleared via The Central Depository, with Oversea-Chinese Banking Corporation as lead manager and bookrunner.

Under the MTN programme, HDB may issue bonds (or notes) from time to time “to finance its development programmes and working capital requirements as well as to refinance the existing borrowings”.

Set up on 1 February 1960 as a statutory board, HDB houses around 80% of Singapore’s resident population. Over nine in 10 HDB dwellers own the flats they are living in.

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