THE Straits Trading Company (STX) on Tuesday (Oct 15) announced a new S$55 million multicurrency debt issuance programme, to issue digital securities.
Such digital securities will be issued and/or listed by the company on the digital platforms operated by Singapore’s Digital Asset Exchange (SDAX).
Under the programme, the conglomerate-investment company said that it may, at its discretion, determine whether commercial papers will be offered for subscription to accredited investors and institutional investors on SDAX’s exchange platform, or to retail investors only on SDAX’s capital markets platform.
The exchange platform is a recognised market operator, while the capital markets platform is a holder of a capital markets services licence. Both are wholly-owned subsidiaries of digital securities exchange SDAX Financial.
Additionally, the first issuance under STC’s S$55 million multicurrency debt issuance programme 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 cent per annum, and will mature approximately three month from the date of issuance.
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The company expects to raise between S$5 million and S$10 million from investors, which shall be determined by the board after taking into account demand from investors.
Further announcements will be made as and when there are material developments to the debt issuance programme and the three-month commercial paper, said STC.
These follow an earlier announcement by STC on its partnership with SDAX to offer clients from both sides access to their respective services.
Through the collaboration, members of Straits Trading Shareholders’ Club will have access to SDAX’s array of private markets and alternative investment opportunities. In turn, SDAX clients will be able to invest in STC’s investment offerings.
Shares of STC closed at S$1.43 on Tuesday, down 1.4 per cent or S$0.02, before the announcements.
