The Monetary Authority of Singapore (MAS) announced today that the Singapore Savings Bond (SSB) which was opened for application in January 2018 (SBFeb18) was oversubscribed. More than 6,300 investors submitted applications totalling approximately S$172 million, exceeding the issuance size of S$150 million. As a result of the oversubscription, some investors will not receive the full amount that they applied for.
The SSB allocation mechanism maximises the number of successful applicants, through the “quantity ceiling method” detailed on the SSB website. Applicants who applied in January 2018 for S$41,000 or lower were given a full allocation, subject to the individual limits. Applicants who applied for S$41,500 or higher would receive S$41,000 or S$41,500. Applicants that were not fully allotted should receive a refund to the bank account from which the application was made, in one to two business days from 29 January 2018.
The details of the next SSB will be announced on 1 February 2018. Interest rates for the coming issue would be based on the average yields of Singapore Government Securities (SGS) in January 2018. Individuals that wish to invest may submit applications from 6.00pm on 1 February 2018, to 9.00pm on 23 February 2018.