Straits Trading Company establishes S$55 million multi-currency debt issuance program

Straits Trading Company (STX) on Tuesday (15 October) announced a new S$55 million multi-currency debt issuance program to issue digital bonds.

These digital securities will be issued and/or listed by the company on digital platforms operated by Singapore’s Digital Asset Exchange (SDAX).

Under the program, the conglomerate investment firm said it may, at its discretion, determine whether commercial papers will be offered for subscription to accredited investors and institutional investors on the SDAX exchange platform, or to retail investors only on the SDAX exchange platform. SDAX capital market.

The exchange platform is a recognized market operator, while the capital market platform holds a capital market services license. Both are wholly owned subsidiaries of the digital securities exchange SDAX Financial.

Furthermore, the first issuance under STC’s multi-currency debt issuance program worth US$55 million was launched on Tuesday.

It will be offered for subscription only to accredited investors and institutional investors at an interest rate of 3.8% per annum and will mature approximately three months from the date of issue.

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The company expects to raise between S$5 million and S$10 million from investors, which will be determined by the board after taking into account investor demand.

Further announcements will be made as there are material developments in the debt issuance program and three-month commercial paper, STC said.

These follow an earlier announcement from STC about its partnership with SDAX to offer customers on both sides access to their respective services.

Through the collaboration, members of the Straits Trading Shareholders’ Club will have access to SDAX’s range of private markets and alternative investment opportunities. In turn, SDAX clients will be able to invest in STC’s investment offerings.

STC shares closed at S$1.43 on Tuesday, down 1.4% or S$0.02, before the announcements.