Would you buy a 50 years bond with only 2.7% interest? Probably not. But when Temasek issues such bonds, they are oversubscribed. I explained before that contrary to many false beliefs, Temasek doesn’t invest CPF’s money, given the good reputation, they have their own way of sourcing for cheap funds. And this is a good example.

Temasek Holdings has just launched a three-tranche offering of senior unsecured US dollar (USD) bonds through its subsidiary Temasek Financial (I) Limited (TFin-I).

According to Business Times, 55% of the 50-year bond was bought by fund managers, while pension funds and insurance firms accounted for 37%. The rest included central banks, sovereign wealth funds, hedge funds, private banks, and securities firms.

By geography, 58% of investors are originated from Asia, followed by a third from the US and Europe.  There are 9% of investors from the Middle East and Africa (EMEA).

The offering comprises a 10-year T2030-USD Temasek bond, a 30.5-year T2051-USD Temasek bond, and a 50-year T2070-USD Temasek bond. They will be unconditionally and irrevocably guaranteed by the Singapore state investment firm.

The new bonds will be issued under TFin-I’s US$25 billion guaranteed global medium-term note program. For your convenience, I have compiled the information below.

Subscribe below if you want to receive timely updates in the future.