There is good news for Singaporeans as they have got the opportunity to invest in the Temasek Holdings’ bonds as it has launched its first public bond offer.
The public bond offers a guaranteed fixed interest rate of 2.7 per cent, revealed the Singapore state investment firm. The interest rate will be paid at the end of every six months.
The T2023-SGD Temasek Bond is issued through the firm’s wholly owned subsidiary, Temasek Financial (IV), and comes under Temasek’s SGD5 billion Guaranteed Medium Term Note Programme.
Temasek mentioned that a total of SGD200 million bonds will be offered to the public while SGD200 million will be given to institutional, accredited and other specified investors. The total offer size could be increased to SGD500 million if the bonds are oversubscribed.
The public offer was opened today and will continue till October 23 at 12 pm. The five-year notes will mature on October 25, 2023. The interest rate will be paid at the end of every six months.
People can apply for the bonds at the ATMs of DBS, POSB, OCBC and UOB, or on the mobile banking apps of DBS or POSB. Offers must be in multiples of SGD1,000 and are payable in full immediately.
For applying the bond, a Central Depository (CDP) account is needed. Central Provident Fund (CPF) members can use up to 35 per cent of their 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.
Launching the bond, Leong Wai Leng, Chief financial officer, 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.