Following yesterday's announcement on the proposed three tranche offering of US dollar bonds via wholly-owned subsidiary Temasek Financial (I) (TFin-I), Temasek Holdings today announced it has priced the bonds, totalling US$2.5 billion ($3.4 billion).
See: Temasek launches three tranche offering of 10, 20 and 40-year USD bonds
The offering comprises a US$750 million 10-year T2031-USD Temasek Bond priced at 1.625%, a US$750 million 20-year T2041-USD Temasek Bond priced at 2.375% and a US$1 billion 40-year T2061-USD Temasek Bond priced at 2.750%.
The coupon rates for the respective tranches are on a per annum basis and will be paid every 6 months.
Unconditionally and irrevocably guaranteed by Temasek Holdings, the bonds are the 22nd, 23rd and 24th bond issues under TFin-I’s US$25 billion Guaranteed Global Medium Term Note Programme.
The 10-year T2031-USD Temasek Bond, due in 2031 was priced at a spread of 40 basis points over the 10-year benchmark US Treasuries. The T2031-USD Temasek Bond was issued at 99.423% to give a yield to maturity of 1.688% per annum.
The 20-year T2041-USD Temasek Bond, due in 2041, was priced at a spread of 65 basis points over the 20-year benchmark US Treasuries. The T2041-USD Temasek Bond was issued at 97.949% to give a yield to maturity of 2.506% per annum.
The 40-year T2061-USD Temasek Bond, due in 2061, was priced at a spread of 85 basis pointsover the 30-year benchmark US Treasuries. The T2061-USD Temasek Bond was issued at 98.825% to give a yield to maturity of 2.799% per annum.
T2041-USD and T2061-USD Temasek Bonds mark the first time Temasek has issued 20- year and 40-year Temasek Bonds.
Temasek has been assigned an overall corporate credit rating of ‘Aaa’ by Moody’s Investors Service and ‘AAA’ by S&P Global Ratings. The T2031-USD, T2041-USD and T2061-USD Temasek Bonds are each likewise rated ‘Aaa’ by Moody’s and ‘AAA’ by S&P.
TFin-I intends to provide the net proceeds from the issuance of the T2031-USD, T2041-USD and T2061-USD Temasek Bonds to Temasek and its investment holding companies to fund their ordinary course of business.
The offering is scheduled to close on August 2.
The bonds are expected to be listed on the Official List of the Singapore Exchange Securities Trading (SGX-ST) onAugust 3.
Citigroup, Credit Agricole, HSBC, Morgan Stanley and Standard Chartered Bank were appointed the joint lead managers and bookrunners for the offering.
Photo: Bloomberg
