Temasek's retail bond offering sees 6 times subscription

TEMASEK has received valid applications of more than 6 times the amount available in its 5-year Singapore dollar bond issue. The retail tranche of the offering drew S$649.5 million in applications, when the public offer closed at noon on Monday (Nov 22).

The offer of the T2026-S$ Temasek Bond, issued via its wholly-owned subsidiary Temasek Financial (IV), comprises 1.8 per cent fixed rate guaranteed notes due 2026.

An allocation process will take place following the closure of the offer, with its results expected by the evening of Nov 23. Temasek had said it would take into account the investor demand from applications received before deciding on the final allocation approach.

This is the second Temasek bond with a retail tranche. The last time it did so 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.

The proposed total offering of up to S$350 million in aggregate principal amount comprises a placement of S$250 million of bonds to institutional, accredited and other specified investors, and a public offer of up to S$100 million of bonds to retail investors in Singapore.

Applications for the public tranche must 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.

There is an option to upsize the total offer to a maximum of S$500 million.

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

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• Temasek offers 5-year Singapore dollar bonds of up to S$350m at 1.8%