Temasek’s first retail bond offer eight times subscribed

FILE PHOTO - A Temasek logo is seen at the annual Temasek Review in Singapore July 7, 2016. REUTERS/Edgar Su

Singapore’s Temasek Holdings announced the closing of its first public offer for five-year Singapore dollar bonds after receiving S$1.6 billion in applications for the S$200-million tranche.

An allocation process for the notes will take place following the close and results will be announced by Wednesday evening, the state investment firm said in a statement on Tuesday.

The bonds that bear a fixed interest rate of 2.7 per cent per annum will mature in October 2023.

Last week, Temasek had launched its first public bond offer through its wholly-owned subsidiary Temasek Financial (IV) Private Limited. The offering — T2023-S$ Temasek Bond — is expected to comprise up to S$400 million ($291 million) in aggregate principal amount. It includes up to S$200 million to retail investors and another S$200 million ($146 million) to institutional, accredited, and other specified investors.

The total offer size may also be enlarged to S$500 million if the bonds are oversubscribed, Temasek had said earlier.

“As at the close of the Public Offer of up to S$200 million, valid applications received totaled S$1,675,700,000 representing a subscription rate of just over 8 times the Public Offer,” Temasek said.

It will provide further information later on the listing and trading of the bond on SGX-ST. The bond issue is under Temasek’s S$5-bilion Guaranteed Medium Term Note Programme established on August 3 of this year.

“Temasek has been issuing bonds to institutional, accredited and other specified investors since 2005. We are pleased to offer Temasek Bonds to retail investors for the first time. This helps Temasek to broaden its stakeholder base and provide Singapore retail investors the opportunity to participate in another retail product,” Temasek chief financial officer Leong Wai Leng said last week.

This is yet another step to develop the retail investment market from Temasek that had in June this year through its unit Azalea Group launched the first listed private equity bonds for retail investors in Singapore. The PE bond offering comprised $90.5 million (S$121 million) Class A-1 bonds that carry a fixed interest rate of 4.35 per cent per annum.

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