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HDB issues S$600m 10-year bond at 2.27%

THE Housing and Development Board (HDB) has issued S$600 million worth of 10-year senior unsecured notes at a coupon of 2.27 per cent under its S$32 billion multicurrency medium-term note programme.

The notes will mature on July 16, 2029, according to a term sheet. They are expected to be rated Aaa by Moody's Investors Service.

The net proceeds will be used to finance the development programmes of HDB and its working capital requirements, and to refinance existing borrowings.

The joint bookrunners for the deal are DBS Bank, HSBC (B&D), Maybank Kim Eng, Standard Chartered Bank and United Overseas Bank. 

Moody's in February affirmed HDB's Aaa issuer and senior unsecured ratings, citing the public housing body's "strong and close linkage" with the Singapore government. 

The ratings agency had also said that "if required, liquidity support would be forthcoming from the government".