Last week, I wrote an in-depth guide on the launch of the Astrea 9 Bond IPO. If you haven’t read it yet, I recommend starting there.

I’ve received many questions from readers and clients – about whether they should subscribe and how to think about this bond in today’s market.

So in this follow-up article, I want to share with you:

• The latest update on the Astrea 9 subscription
• Why you shouldn’t focus too much on the yield
• What to do if you don’t get allocated

Let’s dive in.

Subscription Deadline for Retail Investors

There are 3 different classes of Astrea 9 PE bonds

• Class A-1 Bonds
• Class A-2 Bonds and
• Class B Payment-In-Kind (PIK) Bonds.

Only the Class A-1 and Class A-2 bonds are offered to retail investors in Singapore.

If you missed the private placement tranche, or you are a retail investor, you might be considering the retail tranche now. Here are the highlights of the details:

Do take note of the key timeline:

️ Subscription closes at 12 noon on Tuesday, 6 August 2025.

This is a hard deadline. Applications can be made via ATM, internet banking, or the mobile apps of DBS, OCBC, and UOB.

Minimum investment is S$2,000 or US$2,000, in multiples of $1,000. The administrative fee is about S$2.

Why You Shouldn’t Just Focus on the Yield

To be honest, I went into the Astrea 9 private placement with modest expectations. I even submitted my bid at the lower end of the indicative yield range.

When you look at the headline yield of 3.4% for SGD and 5.7% for USD, the reactions can be mixed.

Some people will brush it off as underwhelming, some might feel excited, especially if you’re comparing it to fixed deposits, T-bills, or Singapore Savings Bonds, particularly if your T-bills are maturing and you’re seeing the latest cut-off yield at just 1.77% (as of 31 July).

But here’s the thing: comparing headline yield alone can be misleading; what really matters is the total return of your investment.

That means you should look beyond the annual interest rate and consider:

• The coupon payments you receive
• Any capital gains if the bond price rises and you sell before maturity
• Bonus interest (like the step-up coupon) if the bond is not redeemed early

In short, your return is not just the income you collect each year—it’s also how your capital performs over time. In a low-rate, volatile environment, this mindset shift is crucial if you want to build a resilient portfolio.

Let me show you a real example:

Astrea 8 Class A-1 Bonds were issued at S$100 in July 2024 with a headline interest of 4.35%. Look at the chart of the price movement in the past year below:

As of 1^st August 2025, the bonds are trading at around $105.6. 

That’s a capital gain of more than 5% in a year, on top of the 4.35% interest coupon.

You Don’t Need to Hold Bonds to Maturity

In my conversation with readers and clients, many investors still think that if you buy a bond, you’re “locked in” until maturity.

That’s not true.

Bonds—especially listed ones like Astrea—can be traded on the secondary market after the IPO. If you manage to get an allocation at launch and the bond price rises, you could realise a capital gain by selling it. That’s exactly why I personally applied for all three classes of Astrea 9 bonds—I believe there’s a strong chance the prices may appreciate in the near term once they start trading. Of course, this is assuming that the interest rate will continue dropping in the near term.

One of my earlier article also echo the strategy of buying bonds in anticipation of a declining interest rate environment.

Additional Reading: Why I’m Considering Longer-Duration US Treasuries For Income Investing Now

It’s important to remember that the bond will eventually be redeemed at its par value of $100—whether at maturity or if it gets called earlier. So any capital gain you enjoy from price appreciation is likely to be temporary unless you sell before redemption.

My point is, don’t assume that bonds are “boring” or “fixed”. With proper monitoring, they can become part of a total return strategy.

You Can Still Buy If You Don’t Get Allocated

One common mistake I see is that people give up if they don’t get any allocation during the IPO. Either they’re not aware that the bond will be available on the secondary market, or they’re reluctant to pay the brokerage commission.

But if you look at the Astrea 8 bond allocation results last year, you’ll notice that most retail investors received only small allocations. That seems to be part of Astrea’s overall strategy—spreading the bond across a wide investor base.

The good news? Even if you didn’t get your hands on Astrea 9 during the IPO, you can still buy it once it starts trading on the SGX, expected on 11 August 2025 (Monday), just after the issue date of 8 August.

And yes, you can buy the Class B PIK Bond too.

In fact, I often help my clients by monitoring the post-listing price movements of the bonds (not just Astrea) and identifying strategic entry points based on valuation and market demand. Sometimes, waiting for the secondary market can actually work in your favour—especially if prices stay near or even dip below the IPO level.

Final Words

Astrea 9 presents an attractive opportunity—but remember, buying a bond is just the beginning. The more important question is: how does it fit into your overall retirement income strategy?

If you’re familiar with my Kueh Lapis Retirement™ Framework, you’ll know that building a reliable and predictable retirement income requires multiple layers of passive income from various sources.

And I get it—tracking the market, analysing yields, and timing your entry or exit can feel overwhelming. Without active monitoring, you might miss valuable opportunities—or unknowingly take on more risk than intended.

If you don’t want to walk this journey by yourself, join our FIRE Retirement Membership (FRM). You’ll gain clarity, fresh insights, and a clearer sense of how to build a retirement income plan that works for you.

Remember, even if you miss this IPO, it is ok. Opportunities come and go— what counts is having a plan and taking the right steps forward. If you haven’t, join our Telegram Channel or subscribe to our weekly newsletter below for actionable insights and strategies.