Singapore’s Temasek Markets Its Longest Bond Amid Lower Yields

(Bloomberg) — An Asian investment giant is marketing 50-year dollar bond, joining a flurry of issuers in the region raising funds in the offshore market.

Singapore’s Temasek Holdings Pte is taking orders for a three-tranche deal which includes a bond due in 2070, it said in an exchange filing. The 50-year portion is its longest-ever maturity, according to data compiled by Bloomberg. That’s after mall operator Scentre Group this month raised $3 billion through a 60-year callable bond.

Spreads on corporate bonds globally have increased in recent days as investors reassess risks from the pandemic. But they remain down from the highs they hit in March, and issuers in Asia ex-Japan have sold a record $254 billion so far this year.

chart: Premium on Asia's top-rated bonds are still lower than March high

© Bloomberg
Premium on Asia’s top-rated bonds are still lower than March high

Temasek is raising money to replenish capital at a number of companies in its portfolio, it said in the filing. Initial price guidance on the 50-year bond is about 135 basis points over the benchmark, according to a person, who isn’t authorized to speak publicly and asked not to be identified. It’s also planning 10-year and 30.5-year tenors.


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Read more on Temasek’s performance in its most recent year

The state-owned investment fund had the worst return since 2016 in the year ended March 31. It has pledged to support several of its portfolio companies with billions of dollars in cash and other measures as the virus saps revenue and profit. The firm is also funding research efforts to fight Covid-19, as well as aiding the production of vital materials including swabs for test kits, face masks and hand sanitizers.

(Updates with spread move in third paragraph)

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