Singapore investment company Temasek Holdings on August 10 priced the longest-ever Singapore bond amounting to S$1.5 billion (US$1.10 billion) as it continued to lock in longer-term financing amid the continuing low interest rate environment.

The 50-year bond was priced at par with a similar coupon and re-offer yield of 2.80%. Launched through its wholly-owned subsidiary Temasek Financial (I) Limited, the proceeds are earmarked for Temasek and its investment holding companies to fund their ordinary course of business.

The deal, issued through its US$25 billion guaranteed global medium-term note programme, generated a final order book in excess of S$1.7 billion from 52 accounts, with 98% of the bonds sold in Singapore and 2% in other jurisdictions. By type of investors, insurance companies accounted for 88% of the paper, while fund managers and government agencies bought 10% and other investors 2%.

This is the second time that Temasek has raised a 50-year money, having printed a US$1 billion bond when it accessed the market in September 2020 with a three-tranche offering totalling US$2.75 billion.

The latest transaction follows another Temasek foray into the US dollar bond market in July this year, in which it raised a total of US$2.5 billion in three tranches, including a 40-year bond amounting to US$1 billion.

DBS acted as the sole global coordinator for the Singapore dollar bond issuance, as well as a joint bookrunner and lead manager, along with HSBC, OCBC Bank, Standard Chartered and United Overseas Bank.