The Housing & Development Board (“HDB”) has issued S$700 million, 7-year Fixed Rate Notes (the “Notes”) under its S$32 billion Multicurrency Medium Term Note (“MTN”) Programme. This is used to finance the construction of the multiple BTOs that has been up for sale as well as in future launches. With the establishment of new BTOs located in different parts of Singapore, HDB is looking to source out for funds for the construction of its projects. Please see the latest construction of Penrose Condo. Penrose condo floor plans can be obtained here.
The Notes have a coupon of 1.76% per annum payable semi-annually. The Notes were issued on 24 February 2020 and will mature on 24 February 2027. It is noted by Analyst that the notes issued are very stable as they are from HDB and hence highly sought after my investors. Investors also can earn from the interest which is paid 2 times a year and therefore have cash flow making it one of the most highly sought after investments.
However, analyst note that the notes issued are in denominations of $250,000 and hence are very high and suitable for investors who have a bigger budget for investments. Approval is already underway for the bonds to be issued to the market and Admission of the Notes to the Official List of the SGX-ST and quotation of any Notes on the SGX-ST is not to be taken as an indication of the merits of HDB, its subsidiaries or the Notes.
It is noted that the notes will be issued through DBS, Maybank, Standard Chartered and United Overseas Bank. HDB from time to time will issue bonds to finance the construction of its projects. HDB is committed to build houses for the masses and to fuifill its main aim of providing every household with affordable housing.