Singapore's three banks are gearing up to sell the first covered bonds in the city-state, with the maiden issuance expected to occur as early as this year, the Straits Times reported.
Popular in Europe and Australia and targeted at institutional investors, these are bank bonds backed by a specific asset pool like mortgages that sit on the issuer's balance sheet.
Industry experts said a typical covered bond issue is usually between about S$500 million and S$1 billion, with a yield of about 1.5 percent to 5 percent and a tenure of five to 10 years.
NOTE: Reuters has not verified this story and does not vouch for its accuracy.
(Compiled by Singapore Newsroom; Editing by Prateek Chatterjee)