Temasek’s 10-year yuan bonds yield 2.75%; its 30-year bonds pay out 3.1%

TEMASEK Financial (I), also known as TFin-I, priced one billion 10-year and 1.7 billion 30-year offshore Chinese yuan bonds at par value, it said on Wednesday (Aug 21).

The 10-year bond has a yield to maturity of 2.75 per cent per annum, while that of the 30-year bond stands at 3.1 per cent per annum. Investors will be paid semi-annually.

The bonds will be issued under TFin-I’s US$25 billion guaranteed global medium-term note programme.

Net proceeds will be used to fund Temasek and its investment holding companies’ ordinary course of business.

Both bonds have been rated “Aaa” and “AAA” by Moody’s Investors Service and S&P Global Ratings, respectively. The offering is scheduled to close on Aug 28.

This comes after Temasek issued three offshore Chinese yuan bonds – one in February and two in March.

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These three placements totalled 1.6 billion yuan (S$293 million), with a spokesperson confirming that Temasek only started issuing offshore Chinese yuan bonds this year.

TFin-I is a wholly owned subsidiary of Temasek, and issues bonds to institutional, accredited and other specified investors.