Temasek Holdings bonds 4.5 times oversubscribed

SINGAPORE: Singapore investment company Temasek Holdings has priced its 10.5—year and 30—year US denominated bonds.

All in, Temasek expects to sell US$1.5 billion worth of bonds in the two issues.

In a statement released on Tuesday, Temasek said the 10.5—year bonds will be priced at a spread of 100 basis points over the 10—year benchmark US Treasuries, with a yield to maturity of 2.466 per cent per annum.

The investment company is selling about US$1 billion worth of the 10.5 year bonds.

Temasek will also sell US$500 million worth of 30—year bonds, priced at a spread of 95 basis points over the 30—year benchmark US Treasuries, with a yield to maturity of 3.502 per cent per annum.

A source close to the deal told Channel NewsAsia that the two issues were 4.5 times oversubscribed.

Benny Koh, Temasek’s treasury head, said: "We are pleased with the strong support from our global investor base. Both issues were oversubscribed, with robust demand from high—quality investors."

The coupon rate for the 10.5—year tranche is 2.375 per cent per annum, while that for the 30—year tranche is 3.375 per cent per annum.

The Temasek bonds are rated AAA by S&P and Aaa by Moody’s.

The offering is scheduled to close on July 23, 2012.

— CNA/wm/al