Temasek prices S$1.5B 50-year SGD bond

Singapore one dollar bill

Temasek Holdings has priced a S$1.5 billion 50-year Singapore dollar bond due 2071, the T2071-SGD Temasek bond, at 2.80 percent, the Singapore state-owned investment company said in a filing to SGX Tuesday.

“There was strong support for the bonds from high-quality institutional, accredited and/or other specified investors based in Singapore,” Temasek said. “Temasek Bonds are issued as public markers of Temasek’s credit quality. They help to increase funding flexibility  and expand Temasek’s stakeholder base.”

The bond, the 25th issue under subsidiary Temasek Financial (I)’s US$25 billion guaranteed global medium-term note program, was priced at par, with investors to be paid every six months, the filing said.

The funds raised from the T2071-SGD bond, Temasek’s first 50-year Singapore dollar bond, are earmarked to fund Temasek’s ordinary course of business, the filing said.

Moody’s Investors Service has assigned an overall credit rating of Aaa to Temasek, while S&P Global Ratings has assigned a AAA rating, the filing said.

Earlier Tuesday, Moody’s said it affirmed Temasek’s Aaa long-term issuer rating and assigned an Aaa rating to the proposed 50-year Singapore dollar notes.

“Temasek’s Aaa rating reflects its strong fundamental credit quality as an investment company, supported by steady dividend income and a large and high-quality investment portfolio,” Jacintha Poh, a Moody’s vice president and senior credit officer, said in a statement.

“In addition, Temasek’s largest investee companies and major dividend contributors have strong investment-grade credit qualities,” she said.

The offering is set to close 17 August, with listing on SGX expected on 18 August, Temasek said.

DBS is the sole global coordinator, while the joint lead managers and bookrunners were DBS, HSBC, OCBC Bank, Standard Chartered Bank and UOB, the filing said.