MAS FRN are tradable debt securities that pay a floating, semi-annual coupon. The issuance of MAS FRN supports the development of SORA-based markets. MAS FRN are issued through auctions, and is one of the instruments used in MAS' money market operations.
MAS considers the prevailing market conditions and its sterilisation needs, in deciding the timing and amount of MAS FRN to be issued.
MAS FRN is one of the instruments that MAS issues.
| Issuer | Monetary Authority of Singapore |
|---|---|
| Tenor | 6 months, 1 year and 2 years |
| Currency | SGD |
| Interest rate | Floating rate Spread plus Compounded SORA For more information on interest rate computation, please refer to the User Guide (362.4 KB). |
| Interest payments | Upon maturity, investors receive the face value |
MAS FRN are issued to institutional investors through auctions, and issuance typically takes place 3 business days after. Auctions are announced on the MAS website 1 business day before each auction. The issuance size of each MAS FRN will also be published at the same time.
You can submit your applications through any of the approved primary dealers.
| Frequency of issuance | Monthly |
|---|---|
| Method of sale | Uniform price auction – competitive bids only. |
| Bid format | Spread to 2 decimal places. |
| Investment amount | S$1,000, and in multiples of S$1,000. There is no maximum amount an institution can hold. |
| Who can buy | Institutional investors only |
| Settlement | T+3 for auctions; T+1 in the secondary market on a delivery-versus-payment (DVP) basis. Settled via the MAS Electronic Payment Systems (MEPS+). |
| Custody | By book entry in the investors’ custody account. Institutions without a MEPS+ account need to open a securities custody account with a primary dealer. |
| Secondary market trading | Primary Dealers: e-trading platform or through brokers Institutional investors: through brokers, and through Primary Dealers' dealer-to-client platforms Trading hours are from 9am to 11:30am and 2pm to 4:30pm |
| Trading basis | Prices to 3 decimal places. |
| Typical transaction size | S$5 million for on-the-runs (benchmarks) and off-the-runs. |
| Maximum number of bids | Unconstrained |
|---|---|
| Maximum allotment | Unconstrained for primary dealers and non-primary dealers. |
| Underwriter | Yes. Each primary dealer is obliged to tender for a minimum share of the issue on offer. |
| Post-auction subscription | No |
| Cut-off time | By noon on auction day. |
| When-issued trading | Yes |
Between the different stages of the auction process, the lag time is as follows:
| Between this stage | And this stage | Lag time is |
|---|---|---|
| Announcement | Auction | 1 business day |
| Bids | Results | 1 hour |
| Results | Settlement | 3 business days |
There is no capital gains tax in Singapore.
For resident financial institutions (excluding Financial Sector Incentive- Standard Tier companies) and corporations, interest income is taxed at a concessionary rate of 10% for MAS FRN issued up to 31 December 2023.
Below are the legislation governing the issuance and management of MAS FRN.
Acts
Subsidiary legislation
Notices
There are currently no auctions open for application.
