TEMASEK Financial (I) Limited (TFin-I) has priced an oversubscribed US$2.75 billion three-tranche deal of guaranteed long-dated bonds, drawing orders from a diverse investor base.
The Temasek Holdings subsidiary priced a US$1 billion 50-year bond at 2.5 per cent, a US$1 billion 30.5-year bond at 2.25 per cent and a US$750 million 10-year bond at 1 per cent.
Support for the tranches came from high-quality institutional, accredited and/or other specified investors globally, said Temasek in a bourse filing on Wednesday.
Deal statistics seen by The Business Times (BT) showed that the final order book reached about US$5 billion from 284 accounts.
The 50-year paper, Temasek's longest tenor debt yet, was priced at a spread of 110 basis points (bps) over the 30-year benchmark US Treasuries. Maturing on Oct 6, 2070, this bond was issued below par, at 99.292 per cent, giving a yield-to-maturity of 2.525 per cent per annum.
More than half (55 per cent) the demand was from fund managers; pension funds and insurance firms made up 37 per cent. The rest included central banks, sovereign wealth funds and private banks.
The bulk of the investor interest (58 per cent) in this bond was from Asia, followed by the US with a third of the orders; Europe, the Middle East and Africa (EMEA) made up 9 per cent.
The 30.5-year bond was priced at a 90 bps spread over the 30-year benchmark US Treasuries. Due on April 6, 2051, it was issued at 98.368 per cent to give a yield-to-maturity of 2.325 per cent per annum.
This instrument was most popular with fund managers (48 per cent of the orders). Pension funds and insurers picked up 41 per cent. Other buyers included central banks, sovereign wealth funds and hedge funds.
US investors were the most keen on the 30.5-year note, snapping up 45 per cent of orders, followed by Asia at 39 per cent, and EMEA, at 16 per cent.
The 10-year paper was priced at a 47.5 bps spread over the 10-year benchmark US Treasures, and issued at 98.821 per cent to give a yield to maturity of 1.125 per cent per annum. It comes due on Oct 6, 2030.
A third of the orders for this note came from central banks, sovereign wealth funds and official institutions; 28 per cent were from banks. Fund managers picked up a fifth, and pension funds and insurers, 15 per cent.
By geography, Asia investors piled into the 10-year issuance, with almost half the orders from the region.
The three tranches are the 19th, 20th and 21st bond issues under TFin-I's US$25 billion guaranteed global medium-term note programme.
Temasek has been assigned an overall corporate credit rating of Aaa by Moody's Investors Service, and AAA by S&P Global Ratings. The three new bonds are each likewise rated Aaa by Moody's and AAA by S&P.
Temasek and its investment holding companies will use the net proceeds from the issuances to fund their ordinary course of business.
The offering, launched on Tuesday, is scheduled to close on Oct 6. The new bonds are expected to be listed on the Singapore bourse on Oct 7.
The joint lead managers and book runners were Barclays, Citigroup, DBS, HSBC and Morgan Stanley.