Temasek upsizes allocation for five-year bond with public tranche

Sign at Temasek earnings briefingSign at Temasek earnings briefing In July 2018

Singapore’s state-owned investment company Temasek completed the allocation for its T2023-SGD five-year bond, it said in a filing to SGX on Wednesday.

The offering was originally set for S$400 million of 2.70 percent guaranteed notes due to 2023, but after meeting with strong demand, the upsize option to S$500 million was triggered, it said.

Temasek’s first public bond offer to retail investors in Singapore was just over eight times subscribed based on the initial S$200 million planned tranche, with over S$1.6 billion retail applications, the statement said. The final public offer size was S$300 million, or about five times the total bids, it said.

All 53,282 valid retail applications received some allocation, with about 70 percent going to applicants who sought S$30,000 or less, it said. All applicants who sought S$6,000 or less received the full allocation, it said.

“We are pleased to provide Singapore retail investors an opportunity to invest in a Temasek Bond,” Leong Wai Leng, Temasek’s chief financial officer, said in the statement.

“We appreciate the confidence they have all shown in us. The demand for both the public offer and the placement was robust, amounting in
aggregate to about S$3 billion,” she said.

The placement to institutional, accredited and other specified investors was just over seven times subscribed with total bids of around S$1.4 billion, the statement said. The final placement size remained at S$200 million, it said.

The bonds are expected to be issued on 25 October and start trading on SGX on 26 October, it said, adding it would use the trading name Temasek 2.7 percent 231025XB#, with a stock code of TEKB.

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