Singapore state investor Temasek is launching a dual-tranche offering of euro bonds comprising 12-year and 30-year benchmark notes, according to the firm’s filing Wednesday.
The bonds – T2031-EUR and T2049-EURO Temasek Bonds – will be offered by Temasek Financial (TFin-I), a wholly-owned subsidiary of Temasek, and will be unconditionally and irrevocably guaranteed by the state investor.
The dual-tranche offering will be made under TFin-I’s $20-billion Guaranteed Global Medium Term Note Programme, with the proceeds to be used to fund ordinary course of business of Temasek and its investment holding companies.
The offering comes three years after TFin-I launched a dual tranch offering of 6-year and 12-year EUR Temasek Bonds, which were later priced 600 million euro 0.5 per cent guaranteed notes due 2022 and 500 million euro 1.5 per cent guaranteed notes due 2028.
Temasek has been assigned an overall corporate credit rating of AAA by Standard & Poor’s Global Ratings, a division of The McGraw-Hill Companies Inc, and Aaa by Moody’s Investors Service. It has issued notes to institutional, accredited and other investors since 2005.
In October, the Singapore state investor redeemed its $1.5-billion 4.3 per cent guaranteed notes due 2019, which was issued by TFin-I. The T2019-US$ Temasek Bond, issued 10 years ago, had an issue size of $1.5 billion and a coupon of 4.3 per cent per annum.
For the new euro bonds offering, Temasek said the application will be made for the listing and quotation of the T2031-EUR and T2049-EUR Temasek Bonds on the Official List of the Singapore Exchange Securities Trading Limited.
Temasek now joins a wave of Asian and global issuers turning to Europe’s bond market, as negative interest rates and investor demand holds down borrowing costs versus dollars, according to a Bloomberg report.
The report said the launch of the dual-tranche euro bonds forms part of Temasek’s fundraising to finance a range of projects, including 5G expansion at M1 Ltd, the Singaporean phone company it helped acquire.
Recently, the state investor participated in the $18-million Series B funding round in pureLiFi, a European developer of Lifi technologies that enable the transfer of internet through light without the use of radio frequencies.
It has also recently announced the appointment of Tan Chong Lee and Uwe Krueger as joint heads for Europe, Middle East, and Africa (EMEA), as part of a slew of organisational changes at the investment firm with effect from 1 January 2020.