September 1, 2014 / 10:37 AM / 3 years ago

Singapore Exchange plans greater retail access to bonds

SINGAPORE, Sept 1 (Reuters) - The Singapore Exchange (SGX) said on Monday it is proposing to give retail investors greater access to bonds listed on the exchange amid a lull in stock trading interest on the bourse.

Under the new scheme, retail investors will be able to buy SGX-listed wholesale bonds initially denominated in S$200,000($160,102) or more, in smaller lots size six months after their listing. Issuers will be allowed to offer subsequent new bonds on the same terms to retail investors, Singapore Exchange Ltd said in a statement.

Out of the over 1,700 outstanding bonds and notes listed on the SGX, only 11 are available to retail investors. (bit.ly/1w05w4z)

SGX plans to apply the new framework only to plain vanilla bonds - the most basic form of bonds - with an initial minimum principal amount of S$300 million and a maximum tenure of 10 years, the exchange said.

SGX and the Monetary Authority of Singapore are seeking feedback on the proposal. (1 US dollar = 1.2492 Singapore dollar) (Reporting by Rujun Shen; Editing by Kenneth Maxwell)

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