Investors rush for first Temasek retail bond

The T2023-S$ Temasek Bond as it is called comes with a five-year maturity and a fixed interest rate of 2.7 per cent, payable twice a year.
The T2023-S$ Temasek Bond as it is called comes with a five-year maturity and a fixed interest rate of 2.7 per cent, payable twice a year.PHOTO: ST FILE

SINGAPORE - Retail investors have made a rush for Temasek Holdings' first public retail bond offer that closed on Tuesday (Oct 23).

The $200 million tranche garnered valid applications of around $1.68 billion, making the offer more than eight times subscribed, said Temasek in a statement.

An allocation process will now occur with results to be announced by Wednesday night (Oct 24).

The T2023-S$ Temasek Bond as it is called comes with a five-year maturity and a fixed interest rate of 2.7 per cent, payable twice a year.

The bonds are expected to trade on the mainboard of the Singapore Exchange on Friday.

A similar $200 million tranche for institutional investors was also popular with Temasek announcing earlier that it was 7.19 times subscribed.

Mr Clifford Lee, global head of fixed income at DBS Bank, said the robust demand is a signal that investors are looking for high quality retail bonds from top-rated issuers.

 

"In light of the strong reception, we hope to see more retail bond offerings from quality issuers, with the same execution style, in the future," he added.