Singapore bond sales expand as economy accelerates

Motivation to grab title of world's fastest-growing economy attracted companies to raise $14.1bln via notes.

Singapore bond sales are accelerating as companies on an island vying for the title of world’s fastest-growing economy exploit the lowest funding costs in at least two decades to finance expansion.

Temasek Holdings Pte. and CapitaLand Ltd. led borrowers that raised $14.1 billion this year, topping the record $13.2 billion of notes sold in 2001, according to data compiled by Bloomberg. The benchmark three-month interbank lending rate was last at 0.55708 percent, near the lowest since 1987, when data on the Monetary Authority of Singapore’s website starts.

“Singapore is going through an outstanding period of economic growth with most sectors performing well,” Aaron Russell-Davison, head of Asia debt syndicate at Standard Chartered Plc, said in a phone interview from the city-state. “In this context it makes sense that companies are looking to borrow longer-dated money at historically attractive levels.”

View the full story in Bloomberg.