How does ListCo Bonds work? 

ListCo Bonds are short-term bonds issued by SGX's publicly-listed companies. An investor provides a certain amount of cash in the beginning, and will receive yearly payments along with a stated interest.

To illustrate:

·      Let’s say a company is looking to raise SGD $500,000.

·      It is issuing a ListCo Bond with a 5% interest rate.

·      You decide to invest $5,000, which is 1% of the amount to be raised.

·      In the first year, you will receive $2,500 (50% of principal amount) along with $250 (5% interest).

·      In the second year, you will receive the remaining $2,500 (50% of principal amount) along with $250 (5% interest).

Why invest in ListCo Bonds? 

  • Enjoy attractive returns on investment (as high as 9% return per annum); 
  • Mitigated risks through the provision of meaningful collateral – ListCo bonds are backed by the entrepreneur’s shares in the ListCo*.

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