Temasek launches offering of 10-year US dollar bonds

Temasek recently reported a record portfolio size of $308 billion as at March 31.
Temasek recently reported a record portfolio size of $308 billion as at March 31.PHOTO: ST FILE

Temasek Holdings has launched a 10-year US dollar bond offering. It is part of a US$20 billion (S$27.1 billion) guaranteed global medium-term note programme, the Singapore investment firm said yesterday. The size of the deal was not disclosed. The notes will be issued by Temasek Financial (I), a wholly owned subsidiary of Temasek.

Temasek, which has a triple-A credit rating, will guarantee the notes. Net proceeds will be used by Temasek and its investment holding companies to fund their ordinary course of business.

The bonds, which will be listed on the Singapore Exchange, are being offered in the United States under Rule 144A, and elsewhere in the world under Regulation S.

Bank of America Merrill Lynch, Citibank, HSBC and Morgan Stanley are the managers of the deal, according to Bloomberg.

The market talk is for a yield spread of 90 to 95 basis points over US Treasuries, market sources told The Business Times. This is the first issue of bonds by Temasek since 2016. Then, it issued euro-denominated six-year and 12-year bonds.

Temasek recently reported a record portfolio size of $308 billion as at March 31.

A version of this article appeared in the print edition of The Straits Times on July 26, 2018, with the headline 'Temasek launches offering of 10-year US dollar bonds'. Print Edition | Subscribe