Strong demand for Temasek's $100m public offer for 5-year bonds

Singapore investment company Temasek's $100 million public offer for its latest $350 million five-year bond has received applications totalling nearly $650 million.

The public offer was for local retail investors.

It was launched on Nov 16 and closed yesterday.

Temasek is offering a placement of $250 million of bonds to institutional, accredited and other specified investors.

An allocation process will take place following the close of the public offer, Temasek said in an announcement on the Singapore Exchange (SGX) website yesterday evening.

The results of the allocation process will be announced today.

Further information will then be shared, and refunds of application monies will be made for applications that were not successful.

This is the second time Temasek has offered bonds to retail investors here.

The last time it did so was in 2018.

The Temasek Bond guaranteed notes due 2026 will pay 1.8 per cent per annum in fixed interest rate.

The pricing was determined through an institutionally driven book-building process, Temasek said in an earlier note on the SGX website.

Issued under wholly owned subsidiary Temasek Financial (IV)'s $5 billion Guaranteed Medium Term Note Programme, the bonds are unconditionally and irrevocably guaranteed by Temasek.

Temasek had said the interest is payable at the end of every six-month period, and the bonds have a tenor of five years from the expected issue date of Nov 24, 2021.

Retail investors were allowed to make only one application for the public offer in multiples of $1,000, subject to a minimum subscription of $1,000.

Temasek will take into account the investor demand based on applications received before deciding on the final allocation.

A version of this article appeared in the print edition of The Straits Times on November 23, 2021, with the headline 'Strong demand for Temasek's $100m public offer for 5-year bonds'. Subscribe