22 Jul 2021

The Vertex bond - first SGD-denominated public corporate bond issued by a global venture capital holding company, is oversubscribed by about 3.7 times (if based on SGD Benchmark) or 2.44 times (if based on final issue size) with an order book of over SGD 1.1 billion

News & Announcements

  • Vertex Holdings’ maiden bond offering, issued under its USD 2 billion Multicurrency Debt Issuance Programme
  • First SGD corporate bond issuance by a global venture capital firm
  • Bonds attracted overwhelming interest from high quality institutional investors and private banks


Singapore, 21st July 2021 – Vertex Venture Holdings Ltd (“Vertex” or “Vertex Holdings” or “Vertex Group”) is pleased to announce the successful pricing of its maiden corporate bond due July 2028 (“bond offering”) under its USD 2 billion Multicurrency Debt Issuance Programme (the “Programme”). The issuance was upsized to SGD 450 million on the back of overwhelming investor demand.

This is the first SGD-denominated public corporate bond issued by a global venture capital investment holding company.

The seven-year Singapore dollar bond at a coupon rate of 3.3 per cent drew significant interest from high quality institutional investors and private banks.

Proceeds of the bond will be used to fund investments (including, without limitation, any existing or new fund commitments or new investments (directly or indirectly held)), refinancing of existing borrowings, redemption of any redeemable preference shares in the share capital of the Issuer, general working capital and general corporate purposes.

DBS Bank Ltd. was appointed the Sole Arranger for the Programme, and Sole Lead Manager and Bookrunner for the bond offering.

The bonds are expected to be issued on 28 July 2021, subject to the fulfilment of customary closing conditions.

This issuance will

  • Diversify Vertex’s sources of long-term patient capital, allowing it to continue funding disruptively transformational companies that are seeking to make the world a better place through their tech solutions and/or innovative business models.
  • Offer fixed income investors exposure to the venture capital industry not previously seen in the SGD bond market.


Mr TEO Ming Kian, Chairman of Vertex Holdings, said: “We decided to issue this corporate bond not just to diversify and extend our sources of funding as part of our transformational journey, but also to sensitise investors who have hitherto not been exposed to venture capital to this asset class. From a single Limited Partner (“LP”) venture Fund with USD 200 million of Assets Under Management (“AUM”) in 2008 when it restarted, and the transformation undertaken over the last decade, Vertex has become a global innovation platform, with many seasoned LPs in a network of underlying Funds with AUM in excess of USD 4.5 billion today.  Bringing in new stakeholders beyond founders and established venture capital investors will help strengthen our innovation and enterprise ecosystem.”

Vertex’s portfolio is diversified by stage, domain and geography. Vertex’s platform consists of five early stage focus partnerships and one growth stage focus partnership.

Mr CHUA Kee Lock, CEO of Vertex Holdings, said: “Vertex’s all-weather, integrated venture capital network of over 90 professionals has enabled our global team-of-teams to scour the world for the best disruptively transformational ideas and start-ups to nurture into global champions.”

Ms TAN Su Shan, Group Head of Institutional Banking of DBS Bank, said, “The venture capital ecosystem is booming here, thanks to record inflows into venture capital funds and the successful track record of many ASEAN unicorns.  This phenomenon has served as a key engine of growth for the new, high-growth digital companies in Asia. This landmark transaction with Vertex opens up an alternate and complementary avenue for venture capital companies to tap debt capital markets to enhance their financial warchests, and this should further turbo charge their ability to identify and invest in more such high potential companies that can make a positive difference.”

Mr Clifford LEE, Global Head of Fixed Income of DBS Bank, said, “The strong reception to Vertex’s inaugural bond amidst a volatile market backdrop is underpinned by its long and successful operating track record and robust management team. Additionally, this milestone offering also provides an opportunity for bond investors to invest in exciting growth sectors via Vertex’s venture capital expertise.”

Under the venture capital platform led by Vertex, each team shares domain expertise, investment ideas, lessons learned and best practices, while having the autonomy of investment decision with their local knowledge and experience. This collective knowledge base, international investor and corporate networks built up over the years is one of the key strengths of Vertex.

The family of Vertex funds has consistently invested in leading tech enterprises, including CyberArk, SolarEdge, Grab, Chipscreen, Patsnap, Innoviz, IGG, PerimeterX and Solid Energy, are or have been part of the Vertex portfolio.

Mr Teo said “We welcome our inaugural venture capital bond investors to the Vertex family. This is the first corporate bond issued by a global venture capital holding company. We are honoured by the strong support shown and apologise for not being able to meet the full demands due to the oversubscription.  The new investors will further diversify the depth, breath and duration of our funding base that would strengthen Vertex and the competitive edge of our portfolio companies in this world of rapid technological advances and disruptive innovation.”

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About Vertex Holdings

Vertex Holdings is a Singapore-based global venture capital investment holding company with over USD 4.5 billion of assets under management across the Vertex network of funds. It is a wholly-owned subsidiary of Temasek Holdings (Private) Limited.  Vertex Holdings provides anchor funding and operational support to its proprietary global network of venture capital funds. These funds comprise:

  • Vertex Ventures China, focused on early stage technology opportunities in China
  • Vertex Ventures Israel, focused on early stage technology opportunities in Israel
  • Vertex Ventures SEA & India, focused on early stage technology opportunities across SEA and India
  • Vertex Ventures US, focused on early stage technology opportunities in US
  • Vertex Ventures HC, focused on early stage technology opportunities in the biotech and medtech sectors
  • Vertex Growth, focused on growth stage, follow-on opportunities from the portfolios of the other early-stage network funds across both technology and healthcare


These Vertex funds are managed by independent and separate General Partnerships and investment teams. Together, the Vertex network has over 90 professionals, all highly experienced with deep knowledge and strong networks in their respective target geographies and sectors.

This global-local structure has allowed Vertex to source for the most transformational and promising technologies and companies to nurture into global champions. Each team shares domain expertise, investment ideas, lessons learnt and best practices. The collective knowledge-base as well as investor and corporate networks built up over the years represent a unique advantage that is hard to replicate.

Vertex has an active portfolio of over 200 potential champions in technology and healthcare across key global innovation hubs. Since its inception in 1988, Vertex has prevailed across economic and technology cycles, amassing a wealth of institutional experience in VC investing. Vertex funds also have a demonstrated track record of identifying and nurturing champions that include Grab, Waze, Argus, Mobike and more.

 

For media enquiries, please contact:

Cheryl Chng
Vertex Holdings
[email protected]

Clara Tan
Redhill Asia
[email protected]

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