Temasek to sell S$1 bln 40-year SGD bond at 4.2 pct

[GoFlyKiteNow]

Temasek to sell S$1 bln 40-year SGD bond at 4.2 pct
Reuters - Thursday, July 22

SINGAPORE, July 22 - Singapore state investor Temasek [TEM.UL] priced its S$1 billion 40-year benchmark bond, the longest-ever maturity for Singapore dollar-denominated debt, at a yield of 4.2 percent, the firm said on Thursday.

Proceeds from the bond issue will be used by Temasek and its investment holding companies "to fund their ordinary course of business," the state investor said.

"This first 40-year Sing dollar Temasek Bond was issued in response to enquiries from Singapore-based investors who were interested in Sing dollar bonds with tenors longer than 30 years," Temasek's treasury head Alyssa Ong said in a statement.

DBS and Standard Chartered were joint lead managers and bookrunners for the bonds, which are rated AAA by Moody's and Standard & Poor's. [ID:nWNA6123]

Singapore's longest-dated government bond currently is a 20-year security that will mature in March 2027. The bond closed at a yield of 2.90 percent on Wednesday.

Temasek's latest bond, regarded by many investors as quasi-sovereign because of the firm's importance to Singapore, is the most-recent example of governments and companies in Asia tapping the longer end of the yield curve.

Temasek earlier this week sold 700 million pounds worth of 12- and 30-year sterling-denominated bonds -- its first in the British currency -- to diversify its funding sources

 

[manokie]

Better don't buy

You never know what will happens when LKY dies

 

[theDoors]

It's good news for those who transferred sums from the OA to the SA.

 

[ahpong]

It's good news for those who transferred sums from the OA to the SA.

We still get 2.5% for our OA, or likely to be lower, as Botak said Tamasick can get cheaper funds elsewhere. why pay 4.2% now?

 

[zuoom]

4.2%. not bad at all. read the papers, sold out in just over 90 odd minutes.

would be a benchmark for many.

 

[theDoors]

4.2%. not bad at all. read the papers, sold out in just over 90 odd minutes.

would be a benchmark for many.

Federal Reserve reissued 30 years treasury bonds some where in 2003, to pursue inflationary monetary policies.

I think 40 years bond is by far the longest.

 

[krafty]

Temasek is raising funds for what? may i ask?

4.2%. not bad at all. read the papers, sold out in just over 90 odd minutes.

would be a benchmark for many.

 

[theDoors]

We still get 2.5% for our OA, or likely to be lower, as Botak said Tamasick can get cheaper funds elsewhere. why pay 4.2% now?

A lot folks worry the SA interest rate will dip after it's being pegged to SGS.

 

[theDoors]

A lot folks worry the SA interest rate will dip after it's being pegged to SGS.

Anyone thinks the Singapore government securities will start issuing 40 years bond?

 

[FlipSide]

4.2%. not bad at all. read the papers, sold out in just over 90 odd minutes.

would be a benchmark for many.

It is a very good deal.

In these days, who gives more than 2 % interest ?

International banks are fighting to give cheap loans.

 

[FlipSide]

Anyone thinks the Singapore government securities will start issuing 40 years bond?

Simple interest @ 4.2% for 1 billion for 40 years works out to -

42 million x 40 years = 1.680 billion dollars.

 

[manokie]

Simple interest @ 4.2% for 1 billion for 40 years works out to -

42 million x 40 years = 1.680 billion dollars.

That's wrong..

4% each year compounded means

1.04^40 = 4.8 Billion

We are 3.8 Billion in Debt

 

[ChaoPappyPoodle]

The PAPpies insist that Temasek and GIC are working for Singapore. WHen there are profits nothing is ever provided for the citizens.

All Temasek and GIC have done is to pay themselves obscene salaries and act with total lack of transparency and unaccountability. They have also put the country in debt from various loans and bonds issues.

Instead of enriching the citizens they have put debt burdens on the citizens.:oIo:

 

[makapaaa]

We still get 2.5% for our OA, or likely to be lower, as Botak said Tamasick can get cheaper funds elsewhere. why pay 4.2% now?

Cos the CPeeF piggy bank is already empty?