Temasek prices five-year bond offering, with public and placement tranches

Singapore two-dollar bills

Singapore state-owned investment company Temasek Holdings has priced its five-year bond offering at 1.8 percent after an institutionally driven book-building process, with plans for placement and a public offering tranches.

The offering for the bond, named the T2026-S$ Temasek bond, is for up to S$350 million, with a potential upsize option to increase the total to up to S$500 million if the offering is oversubscribed, Temasek said in a filing to SGX Monday.

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

The offering will include a placement of S$250 million of bonds to institutional, accredited and other specified investors, and a public offer of up to S$100 million of bonds to retail investors in Singapore, the filing said.

Public offer

The public offer — with applications available via participating ATMs and via DBS’, POSB’s, OCBC’s and UOB’s online services and DBS’, POSB’s and UOB’s mobile app services — will open on Tuesday and close on 22 November, the filing said. Applications will be in multiples of S$1,000, with a minimum of S$1,000, the filing said.

Temasek said that, similar to its T2023-S$ Temasek bond issuance in 2018, it wanted to allocate the T2026-S$ bond to as many retail investors as possible, if it is oversubscribed. Subscriptions will be subject to an allocation process if they exceed the amount available for subscription in the public offering, the filing said.

The bond will pay a fixed interest rate of 1.8 percent per annum, payable at the end of every six-month period. It is noted that Singapore citizens and permanent residents (PRs) are able to invest in the city-state’s Central Provident Fund (CPF), which is a mandatory retirement fund, and receive an at least 2.5 percent rate on the ordinary account.

Placement offer

Applications for the placement offer to institutional, accredited and other specified investors must be in multiples of S$250,000, with a minimum subscription of S$250,000, the filing said.

At least 20 percent of the offering must be issued to institutional investors and relevant persons, the filing said.

The initial allocation of bonds under the placement is expected to be on or after 15 November, with the potential for additional allocations of bonds to institutional, accredited and other specified investors prior to the close of the offering period, Temasek said.

The global coordinator of the offering is DBS Bank, and the joint lead managers and bookrunners of the total offering are DBS Bank, OCBC, UOB, HSBC’s Singapore branch and Standard Chartered Bank (Singapore), the filing said.