Singtel sells US$500m of 10-year bonds at 3.875% coupon; reoffered yield at 3.889%

SINGTEL has sold US$500 million of 10-year senior unsecured bonds at a coupon of 3.875 per cent at a reoffered price of 99.885 per cent of par, according to a term sheet of the deal distributed early Tuesday.

The reoffered yield of 3.889 per cent represents a spread of 105 basis points over 10-year US Treasuries.

The offering, which comes under Singtel's S$10 billion euro medium term note programme, received interest worth US$2.85 billion, or about 5.7 times the amount of notes offered.

Net proceeds will be used for the ordinary course of business, the telco said.

Citigroup, DBS Bank and HSbc were the joint lead managers and bookrunners for the deal.

The notes are rated A1 by Moody's Investors Service and A+ by S&P Global Ratings.