Temasek allocates bonds to all applicants

Temasek said valid applications for the bonds amounting to about $1.68 billion received under the public offer represent a subscription rate of about five times the final public offer size of $300 million.
Temasek said valid applications for the bonds amounting to about $1.68 billion received under the public offer represent a subscription rate of about five times the final public offer size of $300 million.PHOTO: REUTERS

Issue size raised by $100m; those who sought bonds worth $6k and below get full allocation

All retail investors who submitted valid applications for Temasek's inaugural public bond will be allocated at least some of the bonds they applied for.

In view of the strong demand from retail investors, Temasek decided to exercise the option to increase the issue size by $100 million. This means a total of $300 million worth of bonds were offered under the retail tranche.

This was to enable all valid applications to receive some allocation.

Even after the issue size was increased, the bonds on offer were far fewer than the applications for them. This meant that many applicants, especially those who sought a large number of bonds, did not get as much as they wanted.

Those who applied for $6,000 worth of bonds and below will get their full allocation.

Those who applied for bonds worth between $7,000 and $100,000 will each be allocated bonds worth $6,000.

About 70 per cent of the bonds in the public offer went to applicants who applied for bonds worth $30,000 or less, said Temasek.

Those who applied for bonds worth between $101,000 and $3,001,000 will each be allocated bonds worth $7,000 to $9,000.

Retail investors had made a beeline for the T2023-S$ Temasek Bond, for which the offer period closed at noon on Tuesday.

ROBUST DEMAND

We appreciate the confidence they have all shown in us. The demand for both the public offer and the placement was robust, amounting in aggregate to about $3 billion.

MS LEONG WAI LENG, chief financial officer of Temasek.

The bond comes with a five-year maturity and a fixed annual interest rate of 2.7 per cent, payable twice a year.

It will trade on the mainboard of the Singapore Exchange from tomorrow.

Temasek said valid applications amounting to about $1.68 billion received under the public offer represent a subscription rate of about five times the final public offer size of $300 million, or just over eight times the initial retail tranche of $200 million.

In the case of the institutional tranche, it was just over seven times subscribed.

Temasek thanked all successful retail investor applicants, calling them a "new set of stakeholders for Temasek".

Ms Leong Wai Leng, chief financial officer of Temasek, said: "We appreciate the confidence they have all shown in us.

"The demand for both the public offer and the placement was robust, amounting in aggregate to about $3 billion.

"In particular, we very much welcome members of the public who applied under our inaugural public offer. We are pleased to provide Singapore retail investors an opportunity to invest in a Temasek bond."

The Temasek bond is expected to be issued today and retail investors can check their allocations by logging onto their Central Depository accounts.

Those whose application was invalid or who did not receive the full allocation will have their application amounts or the balance refunded to their bank accounts without interest, within 24 hours after the balloting of the new bond.

A version of this article appeared in the print edition of The Straits Times on October 25, 2018, with the headline 'Temasek allocates bonds to all applicants'. Print Edition | Subscribe