What Are Reopened Bonds

MAS may reopen an existing SGS bond by issuing additional amounts of the bond. As the issue price may be below or above the bond's face (par) value, a reopened bond's effective rate of return may not be the same as the coupon rate.

What It Is

When a bond is reopened, MAS issues more of an existing bond partway through its tenor. This increases the total amount outstanding of that bond.

Only SGS bonds can be reopened, but not T-bills or Savings Bonds.

A reopened bond has the same maturity date and coupon rate as the existing bond. However, there are some important differences that you should take note of.

Term to Maturity

Term to maturity refers to the remaining tenor of a bond.

A reopened bond will have a different issue date from the existing bond, although the maturity date remains the same. The remaining term to maturity of the reopened bond will thus be different from the original tenor of the bond.


An existing 5-year bond, N500100X was reopened as a 2-year benchmark bond on 1 November 2002 as follows:

Maturity Existing bond Reopened bond
Issue date 1 February 2000 1 November 2002
Maturity date 1 February 2005 1 February 2005


The price of a reopened bond is determined by the auction's cut-off price. It is influenced by the market price of the existing bond in the secondary market. The price could be higher or lower than the original face (par) value of the bond.

Yield and Bid

When you bid for a reopened bond, you should enter the effective return that you expect from investing in the bond, or the bond's yield to maturity.

Yield to maturity shows the expected total return if a bond or bill is held to maturity. For a bond with coupons, it also assumes that the coupon received are reinvested at the same rate.

In contrast, the coupon rate is fixed, and coupon is calculated based on the coupon rate and the face value of the bond.

For a reopened bond, you will receive the original coupon rate. But depending on the auction cut-off price, the effective rate of return may be different:

If the cut-off price is Yield to maturity is
Lower than the face value Higher than the coupon rate
Equal to the face value Equal to the coupon rate
Higher than the face value Lower than the coupon rate

Bid Amount Deducted

Because the price of the bond will only be known after the auction, 115% of the amount you bid for will be deducted from your bank account upon application.

After the auction, any excess will be refunded to your account, and any shortfall will be deducted.

Find out more about reopened SGS bonds (87.4 KB).