Temasek Financial has completed its maiden offering of Singdollar denominated 20 and 30-year bond notes worth S$600 million to Singapore based institutional investors.
The S$300-million, 2029 bond has a coupon rate of four per cent, while the S$300 million 2039 bond carries a coupon rate of 4.2 per cent.
The Notes will be listed and quoted in the Bonds Market with effect from 9.00 a.m. today. The Notes are in denomination of S$250,000 each and the will be traded in minimum board lot size of S$250,000 each.
The letter “S” denotes that trading of the Notes is restricted to institutional or other bodies or persons specified in Section 274 of the
Securities and Futures Act 2001 (the “SFA”) or to sophisticated investors specified in Section 275 of the SFA.
The recent Dubai incident should give us a good reminder that buying a bond of a government-linked body is different from buying the sovereign bond itself. An implicit guarantee might or might not materialize as bond holders of Dubai World found out the hard way.