Temasek T2026-S$ bond offer upsized to S$500M after bids topped S$2B

Singapore two-dollar billsSingapore two-dollar bills

Correction: An earlier version of this article misstated the maturity date of the bonds; the maturity date is 24 November 2026.

Temasek Holdings exercised the upsize option on its T2026-S$ bond to S$500 million, from the initial S$350 million offer, after total bids across the institutional and public tranches exceeded S$2 billion, Singapore’s state-owned investment company said in a filing to SGX Tuesday.

The initial terms were for 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 placement to institutional, accredited and other specified investors received bids of more than S$1.54 billion, while the public offer to Singapore retail investors racked up S$649 million in valid applications, Temasek said Tuesday.

In exercising the upsize option, Temasek said it increased the retail investor tranche to S$250 million so that all valid applications would receive some allocations, while the placement size remained at S$250 million.

All of the retail applicants applying for S$13,000 and below — or 44 percent of applicants for the public tranche — received a full allocation, the filing said. Around 75 percent of the final public offer amount was allocated to applicants seeking less than S$50,000, the filing said.

The bonds, which have a maturity date of 24 November 2026, are expected to be issued on Wednesday, with trade set to begin Thursday, the filing said.

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

The notes were assigned a credit rating of Aaa by Moody’s Investors Service and AAA by S&P.