Temasek public bond offer upsized to $250m; all valid retail applications received some allocation of bonds

All public offer applicants who applied for $13,000 and below - 44 per cent of all applicants -have received a full allocation.
All public offer applicants who applied for $13,000 and below - 44 per cent of all applicants -have received a full allocation.ST PHOTO: KUA CHEE SIONG

SINGAPORE - All 19,162 retail applicants who applied for Temasek's $100 million public offer for its latest five-year bond have received some allocation of bonds.

Temasek and its wholly-owned subsidiary Temasek Financial (IV) Private Limited, the bond issuer, are also exercising an upsize option to increase the bond's total offering to $500 million, in view of the demand from retail investors.

"This is to enable all valid applications under the public offer to receive some allocation," Temasek said in an announcement on the Singapore Exchange (SGX) website on Tuesday (Nov 23).

The initial proposed total offering was at $350 million.

Temasek said in its launch announcement on Nov 15 that it would be offering a placement of $250 million in bonds to institutional, accredited and other specified investors, while a public offer of up to $100 million was available for local retail investors.

Under the upsize option, the public offer size is increased from $100 million to $250 million. There is no change to the final placement size.

Temasek said on Tuesday that all public offer applicants who applied for $13,000 and below - 44 per cent of all applicants - have received a full allocation.

More than half of the final public offer size was allocated to applicants who applied for less than $50,000, making up 76 per cent of applicants.

Temasek had received applications totalling nearly $650 million for its $100 million public offer.

This represents a subscription rate of about 2.6 times the final public offer size of $250 million, or about 6.5 times the initial public offer size of $100 million.

Temasek received more than $1,542 million in bids from institutional, accredited and other specified investors for its placement offer.

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

This is the second time Temasek has offered bonds to retail investors here. The first time it did so was in 2018.

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.

All applicants who submitted valid applications under the public offer have been allocated all or a proportion of the bonds they applied for.

Applicants whose applications for the public offer bonds were invalid, or who did not receive the full allocation for which they applied, will have their application amounts or the balance refunded without interest, said Temasek.

The Temasek Bond is expected to be issued on Wednesday.

Retail investors can check their allocations by logging into their Central Depository accounts.