Temasek launches 50-year S$ bonds

Temasek has launched an offering of 50-year Singapore dollar bonds, following a recent round of US dollar bonds for 10-, 20-and 40-year periods that were oversubscribed within a day.

Temasek said the $1.5 billion in bonds will be offered through its wholly owned subsidiary Temasek Financial I (TFin-I) under its US$25 billion (S$34 billion) Guaranteed Global Medium Term Note Programme, and will be unconditionally and irrevocably guaranteed by the investment firm.

TFin-I priced the 50-year bonds at par, with a yield to maturity of 2.8 per cent per annum. Investors will be paid every six months.

These bonds, however, will not be available for purchase by US citizens or within the United States.

TFin-I intends to provide the net proceeds from the issuance of what it is calling the T2071-SGD Temasek Bond to Temasek and its investment holding companies to fund their ordinary course of business.

Rating agencies Moody's and S&P Global have both given Temasek overall credit ratings of triple-A. S&P Global analyst Simon Wong said: "The rating... reflects the company's large, well-diversified and high-quality portfolio assets; above-average investment capabilities; and minimal leverage... we see an extremely high likelihood of extraordinary support from the Government of Singapore, if needed."

The offering is scheduled to close on Aug 17, and the new bond is expected to be listed on the Singapore Exchange on Aug 18.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on August 11, 2021, with the headline 'Temasek launches 50-year S$ bonds'. Subscribe