The Astrea VI bond is the sixth issuance in the Astrea Platform. It is issued by Astrea VI Pte. Ltd., a subsidiary of sponsor Astrea Capital VI Pte. Ltd. Astrea Capital is an indirect wholly-owned subsidiary of Azalea Asset Management Pte. Ltd., which is wholly-owned by Temasek Holdings. The bonds are asset-backed securities supported by cash flows from a US$1.5bn portfolio of investments in 35 private-equity funds. The funds invest in private equity (PE), an asset class where equity positions are acquired in private companies or publicly traded companies that may be acquired and privatised as a result of a PE transaction.
Demand for previous Astrea bonds was strong. The same is expected for the new Astrea VI. Astrea IV Class A-1 bonds were 7.4x subscribed and Astrea V Class A-1 bonds 4.5x subscribed. We expect bond yields to tighten once the new bonds start trading on the back of strong demand.