The Singapore state investment firm Temasek Holdings’ announced on Tuesday that retail investors can now invest in Temasek Holdings’ bonds with the launch of its first public bond offer. This announcement was given much support online by Chief Executive Officer of Temasek Holdings, Ho Ching.
The five-year notes, which will mature on Oct 25, 2023, offer a guaranteed fixed interest rate of 2.7 per cent, and the interest will be paid at the end of every six months.
According to Chief financial officer Leong Wai Leng, the bond offer will help Temasek to “broaden its stakeholder base and provide retail investors the opportunity to participate in another retail product”.
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.
Chief financial officer Leong also added, “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”.
However, upon the announcement that CPF members would be able to use up to 35 percent of their investible CPF savings for bonds under the public offering, many netizens speculated if Temasek Holdings was in need of money which was what spurred the issuance of bonds.