All applicants for Temasek's first retail bonds get some allocation after public offer upsized by $100m

SINGAPORE - Retail investors who submitted valid applications for Temasek's inaugural public bond will be allocated all or a proportion of the bonds they applied for.

In view of the strong demand from retail investors, Temasek decided to exercise the option to increase the issue size by $100 million, it said in a media statement on Wednesday (Oct 24). This means a total $300 million was offered under the retail tranche. Temasek said this was to enable all valid applications to receive some allocation.

Those who applied for $6,000 and below will receive full allocations. Those who applied for $7,000 to $100,000 will be allocated $6,000 each.

About 70 per cent of the bonds in the public offer went to applicants who applied for $30,000 or less, said Temasek.

Retail investors had made a beeline for the T2023-S$ Temasek Bond offer, which closed at noon on Tuesday. The bonds come with a five-year maturity and a fixed annual interest rate of 2.7 per cent, payable twice a year. They will trade on the mainboard of the Singapore Exchange on Friday.

Temasek said that valid applications amounting to about $1.68 billion received under the public offer represent a subscription rate of about five times the final public offer size of $300 million, or just over eight times the initial retail tranche of $200 million.

In the case of the institutional tranche, it was just over seven times subscribed.

The Singapore state investment firm thanked all successful retail investor applicants for their support, calling them a "new set of stakeholders for Temasek".

Ms Leong Wai Leng, Temasek's chief financial officer, said, "We appreciate the confidence they have all shown in us. The demand for both the Public Offer and the Placement was robust, amounting in aggregate to about $3 billion."

"In particular, we very much welcome members of the public who applied under our inaugural public offer. We are pleased to provide Singapore retail investors an opportunity to invest in a Temasek Bond."

Any applicant whose application was invalid, or who did not receive the full allocation, will have their application amounts or the balance refunded to their bank account without interest, within 24 hours of balloting of the new bond.

This article was first published in The Straits Times. Permission required for reproduction.