SINGAPORE: Retail investors can now invest in Temasek Holdings’ bonds with the launch of its first public bond offer.
The five-year notes, which will mature on Oct 25, 2023, offer a guaranteed fixed interest rate of 2.7 per cent, the Singapore state investment firm said on Tuesday (Oct 16). The interest will be paid at the end of every six months.
The T2023-S$ Temasek Bond is issued through the firm’s wholly owned subsidiary, Temasek Financial (IV), and comes under its S$5 billion Guaranteed Medium Term Note Programme.
A total of S$200 million of bonds will be offered to the public and another S$200 million to institutional, accredited and other specified investors. The total offer size could be increased to S$500 million if the bonds are oversubscribed.
The offer opened on Wednesday at 9am, and closes on Oct 23 at 12pm. The bonds are expected to trade on the Singapore Exchange on Oct 26.
Retail investors can apply for the bonds at the ATMs of DBS, POSB, OCBC and UOB, or on the mobile banking apps of DBS and POSB. Offers must be in multiples of S$1,000 and are payable in full immediately.
A Central Depository (CDP) account is needed to apply for the bonds.
Central Provident Fund (CPF) members can use up to 35 per cent of their investible CPF savings for bonds under the public offering.
If the bonds are oversubscribed, applications from retail investors will be balloted and allocated, Temasek said. Unsuccessful applications will be refunded.
Chief financial officer Leong Wai Leng said the bond offer will help Temasek to "broaden its stakeholder base and provide retail investors the opportunity to participate in another retail product".
“We issue Temasek bonds as public markers of our credit quality – this is very much as part of our financial discipline as a long-term investor. They also increase our funding flexibility,” she added.
The T2023-S$ Temasek Bond is rated Aaa by Moody's and AAA by S&P.