TEMASEK Holdings' latest offering of 50-year Singapore dollar (SGD) bonds may signal demand for longer-dated SGD bonds, but it will unlikely kick-start a trend among corporate companies, analysts said.

The Temasek bond - priced at par with a yield to maturity of 2.8 per cent per annum - is in the SGD bond market where ultra-long tenure bonds are uncommon, analysts noted.

"The successful 50-year SGD bond issue by Temasek shows that there is robust investor appetite for longer-dated bonds in the SGD bond market, as it serves to satisfy the longer-term asset-liability management investment needs of the real money accounts," said DBS global head of fixed income Clifford Lee.

Average corporate companies, however, may not require ultra-long tenure bonds for their day-to-day financing or refinancing needs.

OCBC credit research analyst Ezien Hoo said: "An ultra-long tenure bond issued by an average corporate is more akin to an equity instrument in our view, given much less visibility of what will become of the corporate over that ultra-long period of time."

She noted that 10 to 15-year bullet bonds or perpetuals are more viable funding options for the average corporate.

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These give issuers flexibility of whether or not to redeem given these have no legal maturity date, while perpetuals are also recognised as equity and comes with no equity dilution. The SGD corporate perpetual market is also active and liquid, she added.

"It is more likely that ultra-long bullet bonds will stay in the purview of statutory boards, government and government-linked projects and a handful of very high grade corporates," Ms Hoo said.

Bond analyst at Phillip Securities Research Timothy Ang also said he could see other government-linked entities follow suit, such as statutory boards or Temasek-linked companies.

"Stronger names allow for more institutional investor take up, who historically have been the chief buyers of long-tenure issues," he said.

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, Temasek said on Tuesday.

Net proceeds of the bond, offered through Temasek's wholly-owned subsidiary Temasek Financial I under its US$25 billion guaranteed global medium-term note programme, will be used by Temasek and its investment holding companies to fund their ordinary course of business.

READ MORE:

• Temasek launches 50-year SGD bonds for purchase outside the US

• Temasek prices US$2.5b bonds; three-tranche offering oversubscribed

• Temasek prices its longest US$1b 50-year bond at 2.5%