Temasek sterling issue oversubscribed

Temasek sterling issue oversubscribedSingapore’s state investment company, Temasek Holdings has said that its sterling-denominated bonds issue has been oversubscribed by the investors.

Treasury Head Alyssa Ong said in a company filing, the oversubscribed sale was “in response to enquiries from U. K.-based institutional investors about long-dated, high-grade sterling bonds.” She added that the bonds has brought new investors to Temasek, has enhanced to capital efficiency and will allow it to be more flexible.

The company fixed the price of 500 million pounds of 5.125 percent bonds due in 2040 to yield 90 basis points and 200 million pounds of 12-year, 4.625 percent notes at a 95 basis-point spread, according to the company filing.

The proceeds form the issue will be utilized by the company to run its ordinary business. The bond issue which saw bid for double the securities on offer received top ratings from credit ratings agencies.

Respected rating agency, Standard & Poor's gave an 'AAA' rating to the issue citing the company’s liquidity position, highly diversified and liquid investments. Moody's also gave an AAA rating citing stability and it expressed that the issue will strengthen liquidity and help it to maintain a staggered debt maturity profile.

Deutsche Bank, HSBC, the Royal Bank of Scotland and UBS were the Joint Lead Managers and Bookrunners for the issue.

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