Temasek sets 10-year bond at 3pc a year

Steve Dinneen
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Singapore state investor Temasek has priced its 1bn Singapore dollar (£450m) 10-year bond at 40 basis points above the Singapore dollar swap offer rate.

It translates to 3.27 per cent a year. The price reflects strong consumer demand for triple-A-rated issues. Temasek said in a statement that proceeds from the bond issue will be used “to fund the ordinary course of business”. It last week raised the size of its medium-term notes programme from $5bn (£3.2bn) to $10bn to give itself more room to borrow.

Meanwhile, a promoter of Indian property firm Sobha Developers yesterday sold a four per cent stake to Aranda Investments, a unit of Temasek. Approximately 4m shares, or four per cent of the company’s equity, changed hands in a block deal worth 251 rupees (£3.43) a share.

Temasek will also invest £48m in Pan-African Investment Partners II, a fund managed by Kingdom Zephyr Africa Management Company.

Temasek owns and manages the Singapore Government’s direct investments, both domestically and internationally. It suffered heavy losses during the global financial crisis, particularly on investments in US and UK banks. However, the value of its portfolio rebounded strongly as markets recovered last year.

It manages a portfolio worth over £77bn primarily focused in Asia and Singapore. The fund claims its total shareholder return since inception 35 years ago is more than 16 per cent, compounded
annually. It has a triple-A corporate credit rating with Standard & Poor and Moody.

Temasek is the triple A-rated investment business of the Singapore state
It manages a portfolio worth over £77bn
It suffered heavy losses during the financial crisis on investments made in US and UK banks