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Temasek to sell 12-year, 30-year euro bonds

SINGAPORE state investment firm Temasek Holdings said its wholly-owned subsidiary will launch a dual tranche offering of euro bonds on Wednesday.

Temasek Financial (I) Limited (TFin-I) will issue a 12-year bond and a 30-year bond under its US$20 billion guaranteed global medium-term note programme, to be unconditionally and irrevocably guaranteed by Temasek.

This will be Temasek's first euro-bond sale in almost four years, as low borrowing costs draw more Asian issuers to Europe.

Net proceeds from the issuance of the euro bonds will go towards funding Temasek and its investment holding companies’ ordinary course of business.

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They will be offered outside the United States, only to non-US persons.

Temasek has been assigned an overall corporate credit rating of “Aaa” by Moody’s Investors Service and “AAA” by S&P Global Ratings.

Application will be made for the listing and quotation of the bonds on the Singapore Exchange.

Approval for the listing and quotation of the bonds is not to be taken as an indication of the merits of TFin-I, Temasek, their subsidiaries and associates, the medium-term note programme, or the two euro bonds.

On Tuesday, Bloomberg reported that Barclays, BNP Paribas, Credit Suisse Group and HSBC Holdings are helping to market the Temasek bond sale, citing a person familiar with the matter.

Euro investment-grade borrowing costs are at about 0.5 per cent, versus 3 per cent in US dollars, according to Bloomberg Barclays index data.