Temasek to offer first retail bonds with planned issue of 5-year notes for up to $400m

The T2023-$ Temasek Bond is expected to comprise $400 million in aggregate principal amount of five-year guaranteed notes maturing in 2023, with an option to upsize the offer up to a maximum of $500 million.
The T2023-$ Temasek Bond is expected to comprise $400 million in aggregate principal amount of five-year guaranteed notes maturing in 2023, with an option to upsize the offer up to a maximum of $500 million.PHOTO: TEMASEK HOLDINGS

SINGAPORE - Temasek is planning to offer new five-year bonds with a first-time public offer tranche for mom-and-pop investors, the state investment firm announced on Tuesday (Oct 16).

The T2023-$ Temasek Bond is expected to comprise $400 million in aggregate principal amount of five-year guaranteed notes maturing in 2023, with an option to upsize the offer up to a maximum of $500 million.

It will be offered under subsidiary Temasek Financial (IV) Private Limited's $5 billion guaranteed medium-term note programme established on Aug 3, and is the first such bond offered to retail investors under the Monetary Authority of Singapore's Bond Seasoning Framework and Exempt Bond Issuer Framework, both launched in May 2016.

The notes, in denominations of $1,000, will be split into a placement to institutional, accredited and other specified investors; and the public offer tranche. Temasek will guarantee the bond, which is expected to be rated "Aaa" by Moody's and "AAA" by S&P.

Temasek said it will commence the book-building process with specified investors shortly, with an initial interest rate guidance of 2.74 per cent area per annum. Details of the tranche and placement sizes are expected to be announced this evening.