Singapore's Temasek launches 50-year dollar bonds, its longest tenor issue

[The_King]

SINGAPORE (Reuters) - Singapore state investor Temasek Holdings (Private) Ltd is launching a clutch of long-dated dollar bonds, including its longest 50-year bonds, as part of its $25 billion guaranteed global medium term note (MTN) programme.

Temasek Financial (I) Ltd, a wholly-owned subsidiary of Temasek, intends to launch a three tranche offering comprising a 10-year, a 30.5-year and a 50-year bond on Tuesday, Temasek said in a statement on Tuesday.

 

 

"Temasek plans proactively for a long dated and well distributed debt maturity profile and avoids large debt repayment obligations in any one year," a company spokesman told Reuters in response to a query on the longer-dated bonds.

Sources aware of the deal said its size and pricing would be finalised later on Tuesday or by Wednesday morning. They declined to be named as they were not authorised to speak to the media.

One source said the issue will be of a benchmark size and raise at least $500 million.

Barclays, Citigroup, DBS, HSBC and Morgan Stanley are the jointbookrunners, according to a termsheet. Citi, DBS and Morgan Stanley declined to comment, while there was no immediate response from the other banks.

Temasek last sold bonds in November 2019.

In July, Thailand's largest energy company PTT raised $700 million from the sale of a 50-year bond in Asia's longest dollar corporate debt deal.

Demand for longer dated debt is driven by pension funds looking for assets which match their far-distant liabilities and record low interest rates around the world have reduced the cost for companies carrying out the deals

[The_King]

@socrates469bc. Please buy, only 50yr

[Huat Zai]

[unclefcuker]

So this is how they going to cover the cpf black hole.