Singapore state investment firm Temasek Holding‘s unit Temasek Financial (I) Limited (TFin-I) is planning to issue a dual-tranche offering comprising 10-year and 30-year offshore CNY bonds, according to a statement.
Temasek did not disclose the amount it plans to issue for the dual-tranche offering but said the bonds will be issued under Temasek Financial’s $25-billion Guaranteed Global Medium Term Note Programme.
TFin-I will provide the net proceeds from the issuance of the Temasek Bonds to Temasek and its investment holding companies to fund their ordinary course of business, per the announcement.
The bonds will be “unconditionally and irrevocably” guaranteed by Temasek. The state investor has been assigned an overall corporate credit rating of “Aaa” by Moody’s Investors Service and “AAA” by S&P Global Ratings.
Temasek said an application will be made for the listing and quotation of the Temasek bonds on the official list of the Singapore Exchange Securities Trading Limited.
In January, TFin-I also announced plans to issue 750 million Chinese Yuan ($104.5 million) of 3.2% guaranteed offshore bonds due 2029.
The issue allows Temasek to expand its “investor base and access a new liquidity pool at competitive pricing”, a spokesperson earlier told Reuters.
Last year, TFin-I made a dual-tranche offering of 4- and 10-year Euro-denominated bonds under its $25 billion Guaranteed Global Medium Term Note Programme.
Temasek Holdings was earlier reported to be augmenting its focus on India as China’s public market continues to suffer a slow recovery.
The firm, which last year posted a S$7-billion loss for the first time in years, saw its one-year shareholder returns swinging back to positive—to around 2% in Singapore dollar terms—for the year ended March 31, 2024.
Its net portfolio value rose S$7 billion from the previous year to S$389 billion, thanks to the returns from its holdings in the US and India, which offset the underperformance of China’s capital markets.
