Temasek to launch dual-tranche offering of 12-year and 30-year bonds

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

Temasek Holdings’ wholly owned subsidiary Temasek Financial intends to launch a dual-tranche offering of 12-year and 30-year bonds denominated in euros, Singapore’s state-owned investment company said in a filing to SGX Wednesday.

The net proceeds of the bonds will be provided to Temasek and its investment holding companies to fund their ordinary course of business, the filing said.

The bonds will be issued under Temasek Financial’s US$20 billion guaranteed global medium term note program and will be unconditionally guaranteed by Temasek, the filing said.

Moody’s Investors Service said in a separate statement that it assigned ratings of Aaa to the proposed bonds, with a stable outlook.

‘”Temasek‘s Aaa rating reflects its strong fundamental credit profile as an investment company. This strength is supported by its steady and
recurring dividend income as well as its large and increasingly diverse investment portfolio,” Vikas Halan a Moody’s senior vice president, said in the statement. “Furthermore, Temasek‘s largest investee companies and major dividend contributors have strong investment grade credit profiles.”

Halan, who is Moody’s lead analyst for Temasek, said the investment company was expected to keep its net borrowings at below 5 percent of the market value of the portfolio.

Temasek said it has been assigned an overall corporate credit rating of Aaa by Moody’s and AAA by S&P Global Ratings.

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