Temasek launches US dollar bonds

by Jonathan Adams
Temasek

The group said that net proceeds from the issuance will be provided to Temasek and its investment holding companies to fund their ordinary course of business

Temasek has announced that it intends to launch a three-tranche offering of US dollar (USD) 10-year, 20-year and 40-year bonds, through its wholly owned subsidiary Temasek Financial I (TFin-I), the group said in a bourse filing on Monday.

The offering, comprising the 10-year T2031-USD, 20-year T2041-USD and 40-year T2061-USD Temasek bonds, is under TFin-I’s US$25 billion (S$34 billion) guaranteed global medium-term note programme, and will be unconditionally and irrevocably guaranteed by the Singapore investment firm, the group said.

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

Temasek has been assigned an overall corporate credit rating of Aaa by Moody’s Investors Service and AAA by S&P Global Ratings.

An application will be made for the listing and quotation of the three new bonds on the Singapore Exchange, the investment firm added.

Moody’s Investors Service on Monday also assigned Aaa ratings to the proposed bonds.

Temasek’s Aaa rating reflects its strong fundamental credit quality as an investment company, supported by steady dividend income and a large and high-quality investment portfolio, said Ms Jacintha Poh, a Moody’s vice-president and senior credit officer, and Moody’s lead analyst for Temasek.

In addition, Temasek’s largest investee companies and major dividend contributors have strong investment-grade credit qualities, she added.

Temasek Holdings (Private) Limited is a Singaporean holding company, owned by the Government of Singapore. Incorporated on 25 June 1974 as a Commercial Investment Company, Temasek owns and manages a net portfolio of S$381 billion as of 31 March 2021, with S$39 billion divested and S$49 billion invested during the year.

Its one-year Total Shareholder Return (TSR) was 24.5%, with longer term 10 and 20-year TSRs at 7% and 8% respectively, compounded annually. Its TSR since inception was 14%, compounded over 47 years.



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