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SINGAPORE : The Monetary Authority of Singapore (MAS) has revealed that the total size of the Lehman Minibond programme was S$508 million, of which S$375 million was sold to some 8,000 retail investors through nine distributors.
HSBC Institutional Trust Singapore, the trustee of the programme, said it does not anticipate commencing the sale of the underlying securities of the Lehman Minibond Programme for at least two weeks.
The MAS said in a statement that HSBC has not received firm proposals from new swap counterparties to replace collapsed investment bank, Lehman Brothers, for the programme.
But a few financial institutions are assessing the commercial viability of taking on this role.
The central bank will work with the parties involved before HSBC commences any sale of the underlying assets, should a firm agreement for a replacement swap be reached.
An Extraordinary General Meeting for noteholders to vote on the issue will be called with a 21-day notice period given.
The MAS will also appoint an independent financial advisor to assist noteholders in assessing their options and making a well-informed decision.
The replacement swap proposal would require positive votes from at least 75 per cent of all noteholders.
The MAS will work with HSBC to ensure that the underlying securities will be sold in an orderly fashion, and that the trustee will act in noteholders' interest when disposing of the assets.
So far, the MAS has received 680 formal complaints from investors of the Lehman Minibond programme, Merrill Lynch Jubilee Series 3, and the DBS High Notes 5 products.
For the Merrill Lynch Jubilee Series 3, S$23 million of a total S$28 million notes issued were sold to about 350 investors through six stockbroking firms.
Over 80 per cent of the Minibond Programme and Merrill Lynch Jubilee Series 3 noteholders invested up to S$50,000, with 28 per cent having bought S$10,000 or less.
In the case of DBS High Notes 5, over 1,400 investors bought S$103 million worth of notes. More than half of them invested S$50,000 or less. - CNA/ms
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