Temasek's 5-year bond upsized to S$500m; institutional bids amount to 6.2 times final placement size

TEMASEK'S 5-year Singapore dollar bond issue has been upsized to S$500 million from the S$350 million initially proposed, in view of demand from retail investors.

The offer received S$1.54 billion in bids from institutional, accredited and other specified investors - amounting to a subscription rate of about 6.2 times its placement tranche. The public offer, which closed on Nov 22, received valid applications totalling about S$649 million, representing a subscription rate of 2.6 times the final public offer size.

The upsized offering for the T2026-S$ Temasek Bond will comprise a placement of S$250 million of bonds to institutional, accredited and other specified investors, and another S$250 million of bonds to retail investors, Temasek said in a bourse filing on Tuesday (Nov 23).

The bond is expected to be issued on Nov 24, with trading expected to begin on Nov 25 at 9 am.

All 19,162 valid retail applications have been allocated all or a proportion of the bonds they applied for, Temasek said.

Forty-four per cent of the applications were for amounts of S$13,000 and less, and these applicants received a full allocation. More than half of the final public offer size was allocated to applicants who applied for less than S$50,000 - comprising 76 per cent of the applicant pool.

Applications for the public tranche had to be made in multiples of S$1,000, subject to a minimum subscription of S$1,000. Each retail investor is only allowed to make 1 application under the public offer.

Those whose applications were invalid, or who did not receive the full allocation for which they applied, will have their application amounts or balances refunded without interest via their bank accounts within 24 hours after allocation of the public offer bonds.

The T2026-S$ Temasek Bond has been rated "Aaa" by Moody's and "AAA" by S&P.

This is the second Temasek bond with a retail tranche. Temasek's only other public offer was in 2018 with the 5-year T2023-S$ Temasek Bond, which closed at a fixed interest rate of 2.7 per cent per annum.

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