Temasek Prices S$750 Million 10-Year Bond With 2.65% Coupon

Singapore state investor Temasek has priced a new S$750 million ($584.84 million) 10-year bond at a 2.65% annual coupon through its wholly-owned financing subsidiary, Temasek Financial (I).

The debt, which will mature in 2036, is unconditionally and irrevocably guaranteed by Temasek, according to a company announcement on Monday.

Offering Details

The bond issuance is part of Temasek Financial (I)'s $30 billion global medium-term note programme. The offering is scheduled to close on August 11, with the bonds expected to be listed on the Singapore Exchange Securities Trading Limited the following day, on August 12.

Key terms of the issuance include:

• Principal Amount: S$750 million
• Coupon: 2.65% per annum
• Interest Payments: Semi-annually
• Maturity Date: 2036

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Net proceeds from the sale will be provided to Temasek and its investment holding companies to fund their ordinary course of business.

Market Implications

Temasek's ability to secure a relatively low coupon on a 10-year bond reflects its exceptional creditworthiness in the global debt markets. The state-owned investment firm holds the highest possible credit ratings from major agencies, with a Aaa rating from Moody’s and a AAA rating from S&P Global Ratings.

These top-tier ratings signify an extremely low risk of default, allowing Temasek to access capital at highly favorable terms. For investors, the bonds represent a low-risk investment vehicle backed by one of the world's most stable and reputable institutional investors.