http://online.wsj.com/article/BT-CO-20100114-717506.html?mod=WSJ_latestheadlines
Temasek Considering Selling More Bonds - Sources
By P.R. Venkat and Costas Paris
Of DOW JONES NEWSWIRES
SINGAPORE (Dow Jones)--Temasek Holdings Pte Ltd., the Singapore government-owned investment company, is considering either raising the amount of its US$5 billion medium-term note program or coming out with a new issuance plan this year, two people familiar with the situation said Friday.
The timing and amount of any new issuance have yet to be finalized, but one person familiar with the situation said a new bond issue could be worth between US$2 billion and US$3 billion.
"It is still at an early stage and Temasek is studying the market," the person said.
Another person familiar with the situation said Temasek was likely to publicize its plans in the first or second quarter of the year.
The global bond market is heating up as issuers hurry to issue ahead of expected interest rate rises later this year. So far this month, the Philippines and Indonesia have issued global bonds to take advantage of the current interest-rate environment.
While one person said Temasek is certainly aware of the favorable environment, its plans were being driven more by strong investor appetite.
"There is investor demand for Temasek bonds and we are getting lots of enquiries," a banker familiar with the situation said.
Temasek announced a US$5 billion medium-term note program in 2005. Some US$4 billion of the money has been used to fund Temasek's operations.
The first tranche, issued in September 2005, was for US$1.75 billion worth of 10-year bonds paying 4.5%. It was the first global bond in the investment company's 35-year history.
A subsequent tranche, issued in October 2009, was for US$1.5 billion. The 10-year note paid 4.3%, while a 30-year tranche worth US$500 million issued in November offered investors 5.375%.
Under the same 2005 program, Temasek came out last December with two tranches of notes denominated in Singapore dollars, both worth S$300 million. The 20-year tranche paid 4.0%, while the 30-year tranche carried a coupon of 4.2%.
Temasek will keep the flexibility of issuing the notes in "a range of currencies," which would enable it to tap the market according to demand, the second person said.
Temasek has a rating of AAA from Standard & Poor's Ratings Services and Aaa from Moody's Investors Service. This triple-A rating reflects the company's healthy liquidity position, highly diversified investments and--if needed--strong support from the Singapore government.gl
Temasek Considering Selling More Bonds - Sources
By P.R. Venkat and Costas Paris
Of DOW JONES NEWSWIRES
SINGAPORE (Dow Jones)--Temasek Holdings Pte Ltd., the Singapore government-owned investment company, is considering either raising the amount of its US$5 billion medium-term note program or coming out with a new issuance plan this year, two people familiar with the situation said Friday.
The timing and amount of any new issuance have yet to be finalized, but one person familiar with the situation said a new bond issue could be worth between US$2 billion and US$3 billion.
"It is still at an early stage and Temasek is studying the market," the person said.
Another person familiar with the situation said Temasek was likely to publicize its plans in the first or second quarter of the year.
The global bond market is heating up as issuers hurry to issue ahead of expected interest rate rises later this year. So far this month, the Philippines and Indonesia have issued global bonds to take advantage of the current interest-rate environment.
While one person said Temasek is certainly aware of the favorable environment, its plans were being driven more by strong investor appetite.
"There is investor demand for Temasek bonds and we are getting lots of enquiries," a banker familiar with the situation said.
Temasek announced a US$5 billion medium-term note program in 2005. Some US$4 billion of the money has been used to fund Temasek's operations.
The first tranche, issued in September 2005, was for US$1.75 billion worth of 10-year bonds paying 4.5%. It was the first global bond in the investment company's 35-year history.
A subsequent tranche, issued in October 2009, was for US$1.5 billion. The 10-year note paid 4.3%, while a 30-year tranche worth US$500 million issued in November offered investors 5.375%.
Under the same 2005 program, Temasek came out last December with two tranches of notes denominated in Singapore dollars, both worth S$300 million. The 20-year tranche paid 4.0%, while the 30-year tranche carried a coupon of 4.2%.
Temasek will keep the flexibility of issuing the notes in "a range of currencies," which would enable it to tap the market according to demand, the second person said.
Temasek has a rating of AAA from Standard & Poor's Ratings Services and Aaa from Moody's Investors Service. This triple-A rating reflects the company's healthy liquidity position, highly diversified investments and--if needed--strong support from the Singapore government.gl
