Temasek proposes up to S$500M five-year bond offering

Temasek fiscal 2019 performance overviewTemasek fiscal 2019 performance overview

Singapore state-owned investment company Temasek Holdings has proposed a five-year bond offering of up to S$350 million, with the potential to upsize to a maximum of S$500 million if the offer is oversubscribed.

“The proposed offer is expected to commence after a bookbuilding process and will include a placement tranche for institutional, accredited and other specified investors, and a public offer tranche for retail investors in Singapore,” Temasek said in a filing to SGX.

The bookbuilding process with institutional, accredited and other specified investors will start “shortly,” with the initial interest rate guidance at around 1.86 percent, Temasek said.

The notes, to be called T2026-S$, would mature in 2026, and are intended to be listed on SGX’s bond market, Temasek said.

The bonds will be issued in denomination of S$1,000, which is also the issue price, the filing said.

The placement tranche for specified investors is expected to have applications in multiples of S$250,000, which is also the minimum subscription, the filing said.

The public offer tranche for retail investors in Singapore is expected to have applications in multiples of S$1,000, which also the minimum subscription, the filing said.

The notes would be issued by wholly owned subsidiary Temasek Financial (IV) under the S$5 billion guaranteed medium-term note program, the filing said.

Temasek has an overall corporate credit rating of Aaa from Moody’s Investors Services and AAA from S&P Global Ratings, with those ratings expected to be applied to the bonds, the filing said.