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Temasek prices its euro-denominated bonds

Temasek will sell six-year, €600 million 0.5 per cent bonds due 2022, and 12-year, €500 million 1.5 per cent bonds due 2028.

SINGAPORE: Temasek Holdings has priced a dual tranche of euro-denominated bonds - due 2022 and 2028 - which it launched on Tuesday (Feb 23).

In a filing to the Singapore Exchange on Wednesday, the Government-owned investment firm said the six-year, €600 million 0.5 per cent bonds due 2022 were priced at a spread of 48 basis points over the 6-year benchmark euro mid-swap rate.  

It was issued at 99.336 per cent to give a yield to maturity of 0.613 per cent per annum.

The 12-year, €500 million 1.5 per cent bonds due 2028 were priced at a spread of 80 basis points over the 12-year benchmark euro mid-swap rate.

It was issued at 99.913 per cent to give a yield to maturity of 1.508 per cent per annum.

In the exchange filing, Temasek's chief financial officer Leong Wai Leng said: "Both issues were oversubscribed, with robust demand from high-quality investors."

The bonds, fully guaranteed by AAA-rated Temasek, will be issued by its wholly-owned subsidiary Temasek Financial (I) under a US$15 billion Guaranteed Global Medium Term Note Programme.

Temasek Financial (I) intends to provide the net proceeds from the issuance of the bonds to Temasek and its investment holding companies to fund their ordinary course of business.

The offering is scheduled to close on Mar 1.