Temasek Holdings has proposed to offer new five-year bonds through its wholly-owned subsidiary, Temasek Financial (IV) Primate Limited on Nov 15.
The bonds will be issued under Temasek Financial (IV)’s $5 billion guaranteed medium term note programme, and guaranteed by Temasek.
It will be listed on the SGX-ST.
The proposed offer is expected to commence after a bookbuilding process and will include a placement tranche for institutional, accredited and other specified investors, and a public offer tranche for retail investors in Singapore.
This is the second time that Temasek has offered a bond with a retail tranche. The first was in 2018.
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The new T2026-S$ Temasek Bond will offer up to $350 million in aggregate principal amount of five-year guaranteed notes that will mature in 2026.
The notes will carry a coupon of 1.8% per annum.
The total offering of $350 million comprises a placement of $250 million of bonds to institutional, accredited and other specified investors. It will also include a public offer of up to $100 million of bonds to retail investors in Singapore.
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The offer may be upsized to a maximum of $500 million in the event that the bonds are oversubscribed.
The new bond will be issued in denominations of $1,000, with an intended issue price of $1,000.
For the public offer tranche for retail investors, applications must be in multiples of $1,000 with a minimum subscription of $1,000.
For the placement tranche for specified investors, applications must be in multiples of $250,000 with a minimum subscription of $250,000.
A bookbuilding process with institutional, accredited and other specified investors will commence shortly, with an initial interest rate guidance of 1.86% area per annum.
The bond is expected to be rated “Aaa” by Moody’s and “AAA” by S&P.
Photo: Bloomberg
