Temasek sets terms of its first bond with retail tranche

Temasek Holdings will be offering its first bond with a public offer for retail investors in Singapore, with an offering of up to S$400 million set at a 2.70 percent fixed rate for the guaranteed notes due 2023, it said in a filing to SGX on Tuesday after the market close.

The T2023-SGD Temasek bond, offered via Temasek’s wholly owned subsidiary Temasek Financial (IV), will include a placement of S$200 million of bonds to institutional, accredited and other specified investors, it said. It will also have a public offer of up to S$200 million of bonds to retail investors in Singapore, it said.

The bond will pay a fixed interest rate of 2.70 percent a year, paid at the end of every six-month period, with a five-year tenor, it said. It will be issued in denominations of S$1,000, with an issue price of S$1,000, it said.

“Temasek has been issuing bonds to institutional, accredited and other specified investors since 2005. We are pleased to offer Temasek Bonds to retail investors for the first time. This helps Temasek to broaden its stakeholder base and provide Singapore retail investors the
opportunity to participate in another retail product,” Leong Wai Leng, Temasek’s chief financial officer, said in the statement.

“The interest rate offered to the retail investors under the public offer is the same as that for the placement. We have determined the interest rate through a book building with institutional, accredited and other specified investors,” she added.

The bond is eligible for inclusion under the CPF Investment Scheme for the ordinary account and CPF members can use up to 35 percent of their investible CPF savings to apply for the public offer of the bonds or to purchase them subsequently from the market, it said.

Applications for the public offer are payable in full immediately, and the payment must be made via DBS, POSB, OCBC or UOB ATMs, those banks’ websites, or via the DBS or POSB mobile banking apps, it said.

For institutional, accredited and other specificed investors in the placement, the application must be in multiples of S$250,000, it said.

The proceeds will be provided to Temasek and its investment holding companies to fund their ordinary business, the statement said.

The offering has an upsize option to increase the total offering to no more than S$500 million, if the public offer and/or placement are oversubscribed, Temasek said.

Applications for bonds under the placement opened on Tuesday, while applications for the public offer open on Wednesday, it said.

The last date for applications under the public offer and the placement is expected to be 23 October, with the results expected to be announced on 24 October, issuance expected on 25 October and trading on SGX expected to begin on 26 October, it said.

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