Temasek prices 4-year euro bonds at 3.25% and 10-year bonds at 3.5%

STATE-OWNED investor Temasek has priced its four-year and 10-year euro bonds at 3.25 per cent and 3.5 per cent, respectively.

The guaranteed notes are worth 750 million euros (S$1.1 billion) each and represent the 26th and 27th bond issues under Temasek subsidiary Temasek Financial (I)’s US$25 billion guaranteed global medium-term note programme.

Temasek on Thursday (Feb 9) noted strong interest in the bonds from high-quality institutional, accredited and other investors.

The dual tranche offering was announced on Wednesday and is scheduled to close on Feb 15, 2023.

The T2027-EUR Temasek Bond was priced at a spread of 25 basis points (bps) over the four-year benchmark euro mid-swap. Its coupon rate of 3.25 per cent per annum will be paid annually.

It will be issued at 99.96 per cent to give a yield maturity of 3.26 per cent per annum.

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Meanwhile, the T2033-EUR Temasek Bond was priced at a 3.5 per cent coupon rate per annum, at a spread of 65 bps over the 10-year benchmark euro mid-swap. It was issued at 99.65 per cent to give a yield to maturity of 3.54 per cent per annum.

Like Temasek’s overall corporate rating assigned by Moody’s Investors Service and S&P Global Ratings, the bonds have been rated “Aaa” by Moody’s and “AAA” by S&P.

Temasek Financial (I) intends to provide the net proceeds from the issuance of these bonds to Temasek and its investment holding companies, to fund their ordinary course of business.