Singapore Exchange (SGX) has welcomed the listing of T2023-S$ Temasek Bond, the first Temasek Bond that is open to retail investors in Singapore. The retail bond was issued by Temasek Holdings (Private) Limited (“Temasek”)’s wholly-owned subsidiary, Temasek Financial (IV) Private Limited, under its S$5 billion Guaranteed Medium Term Note Programme.
The new five-year T2023-S$ Temasek Bond, which is guaranteed by Temasek, offers a fixed interest rate of 2.7% per annum payable every six months. The offer comprised an up-sized S$300 million tranche for retail investors, with another S$200 million placement to institutional, accredited and other specified investors.
The first Temasek bond with a retail tranche garnered strong interest, receiving a subscription rate of about five times the final public offer size of S$300 million, or over eight times the initial retail tranche of S$200 million. The institutional tranche was over seven times subscribed.
Ms Leong Wai Leng, Chief Financial Officer of Temasek, said:
We would like to thank all the applicants for their support for our T2023-S$ Temasek Bond. We appreciate the confidence they have all shown in us. The demand for both the Public Offer and the Placement was robust, amounting in aggregate to about S$3 billion. In particular, we very much welcome members of the public who applied under our inaugural Public Offer. We are pleased to provide Singapore retail investors an opportunity to invest in a Temasek Bond. We very much welcome our first retail investors as a new set of stakeholders for Temasek.
Chew Sutat, Head of Equities and Fixed Income, SGX, added:
We are pleased to welcome the listing of Temasek’s inaugural retail bond, which marks the first time retail participants can invest in corporate bonds through their investible CPF savings. The robust demand for Temasek’s bonds reflects a strong investor appetite in Singapore’s retail bond market, and we look forward to more issuers participating in our market.
The T2023-S$ Temasek Bond will start trading on SGX from today.