What is Commercial Paper?
Commercial Paper is a short-term, unsecured debt instrument issued by creditworthy corporations and financial institutions. Companies issue commercial paper as a cost-effective alternative to bank loans, enabling them to manage short-term liquidity requirements.
Why Invest in Commercial Paper?
Short-Term Investment
An attractive option for investors seeking liquidity and flexibility, due to their short maturities (1 – 12 months).
Higher Yields
Offers a fixed interest rate with a yield that is often higher than savings accounts or government securities like Treasury Bills.
Consistent Source of Income
Provides a consistent source of income for investors seeking short-term opportunities with potentially higher yields. With fixed interest payments and a predetermined maturity, they often offer reliable returns within a specific time frame.
Creditworthy Issuers
Issued by companies which are publicly listed and/or have strong credit ratings. The financial information about the issuer is disclosed, providing investors confidence in the issuer’s ability to repay.
Diversification
Delivers portfolio diversification by providing exposure to corporate debt, distinct from other asset classes like public equities and bonds.
Risks of Investing in Commercial Paper
Credit Risk: While commercial paper is generally issued by reputable and creditworthy companies, it remains an unsecured instrument. There is no collateral and carries the risk of issuer default. Investors should therefore carefully assess the financial health and creditworthiness of the issuing company before committing to such investments.
At SDAX, we prioritise quality and security, partnering only with reputable issuers to ensure investors have access to trusted high-quality investment products.
Who Can Invest in Commercial Paper?
Commercial paper has traditionally been issued in large denominations available only to institutional investors and accredited investors.
SDAX is breaking tradition, making commercial paper accessible to retail investors, enabling them to invest with just S$1,000!
Institutions
Accredited Investors
Retail Investors
A Typical Commercial Paper Return Profile
3% to 6%
coupons
1 to 6 month
maturities
USD, SGD, GBP, EUR currencies
Launch of The Straits Trading Shareholders' Club Partnership with SDAX
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Some of Our Completed Listings
CGS SG 3-month SGD Commercial Paper Series 006
Investment Details About the Issuer CGS International Securities Singapore Pte. Ltd. (UEN: 198701621D) is licensed by the Monetary Authority of Singapore and is a wholly-owned subsidiary of CGS International Securities Pte. Ltd. For more information, please visit the Issuer’s website. Get Started
Intraco 1-month SGD Commercial Paper Series 011
Investment Details About the Issuer Intraco Limited (UEN: 196800526Z) (“Intraco”) was incorporated on 5 November 1968 and has been listed on the Mainboard of the Singapore Exchange since 18 December 1972. Intraco has evolved over the years. Today Intraco, through its wholly owned subsidiaries, is engaged in the distribution and/or
Straits Trading 3-month SGD Commercial Paper Series 001
Investment Details About the Issuer Established in 1887, The Straits Trading Company Limited (UEN: 188700008D) (“Straits Trading”) is a conglomerate-investment company with operations and financial interests in resources, property, and hospitality. These include majority or strategic stakes in Malaysia Smelting Corporation Berhad, ESR Group Limited, and Far East Hospitality Holdings
Tat Hong Equipment Service 3-month SGD Commercial Paper Series 003
Investment Details About the Issuer Tat Hong Equipment Service Co., Ltd. (registration number: CR-291251, the “Issuer”) is the first foreign-owned tower crane service provider established in the People’s Republic of China (“PRC”) since 2007, and has been listed on the Main Board of The Stock Exchange of Hong Kong Limited
ValueMax 6-month SGD Commercial Paper Series 002
Investment Details About the Issuer ValueMax Group Limited (UEN: 200307530N) and its subsidiaries (the “Group”) provides pawnbroking and moneylending services as well as the retail and trading of pre-owned jewellery and gold. The Group’s first pawnbroking outlet was established in 1988, providing pawnbroking services and the retail and trading of
Yongmao 3-month SGD Commercial Paper Series 001
Investment Details About the Issuer Yongmao Holdings Limited (UEN: 200510649K) (“Yongmao”) and its subsidiaries (collectively, the “Group”) has been involved in the design, development and manufacture of a wide range of tower cranes, components and accessories since 1992. Sold mainly to construction equipment distributors and equipment rental companies in overseas
