Temasek prices US$1.5 billion worth of dollar-denominated fixed and floating-rate bonds due 2027
It priced US$750 million worth of the two-year fixed rate bonds at a coupon rate of 3.75 per cent per annum
[SINGAPORE] Singapore investment company Temasek on Thursday (Aug 14) said it has priced two dollar-denominated bonds worth US$1.5 billion in total.
On Wednesday, it announced the launch of an offering comprising two-year fixed rate and two-year floating rate US dollar bonds.
Under the bond offering, Temasek Financial (I) has priced US$1.5 billion worth of guaranteed notes due in 2027, in two tranches.
It priced US$750 million worth of the two-year fixed rate bonds at a spread of 15 basis points over the two-year benchmark US Treasuries. Investors will be paid every six months at a coupon rate of 3.75 per cent per annum.
Issued at 99.826 per cent, the bonds provide a yield to maturity of 3.841 per cent per annum.
It also priced US$750 million worth of the two-year floating rate bonds at a spread of 38 basis points over the Secured Overnight Financing Rate. Investors holding these bonds will be paid quarterly interest payments.
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The bonds will be issued by its wholly owned subsidiary Temasek Financial (I), under its US$25 billion guaranteed global medium-term note programme. They will be unconditionally and irrevocably guaranteed by Temasek.
Net proceeds from the issuance will be provided to Temasek and its investment holding companies to fund their ordinary course of business.
Temasek has been assigned an overall corporate credit rating of “Aaa” by Moody’s Investors Service and “AAA” by S&P Global Ratings, a division of S&P Global.
The bonds will be offered to qualified buyers within and outside of the US, with the offering scheduled to close on Aug 20. They are available only to institutional and accredited investors.
An application will be made for the bonds’ listing and quotation on the official list of the Singapore Exchange. The bonds are expected to list on the bourse on Aug 21.
Citigroup, Bank of America Securities, Morgan Stanley and Societe Generale were joint bookrunners for the issuance.
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