Temasek's first offering of sterling-denominated bonds oversubscribed

Buyers bid for double the securities on offer despite sterling bond sales halved to 53bln pounds.

Temasek Holdings Pte, Singapore’s state investment company, said investors bid for more than it offered in its first sale of sterling-denominated bonds.

Temasek priced 500 million pounds (S$1.04 billion) of 5.125 percent bonds due in 2040 to yield 90 basis points more than similar-maturity U.K. gilts, and 200 million pounds (S$417.23 billion) of 12-year, 4.625 percent notes at a 95 basis-point spread, it said in a stock market filing on Monday.

The oversubscribed sale was “in response to enquiries from U.K.-based institutional investors about long-dated, high-grade sterling bonds,” Treasury Head Alyssa Ong said in the filing. Buyers bid for double the securities on offer, said a person with knowledge of the matter, who asked not to be identified.

Investors speculating that inflation won’t spur central banks to raise interest rates are buying longer-term corporate bonds at the fastest pace in more than three months, according to data compiled by Bloomberg. Companies issued $14.6 billion of notes due in 10 years or more last week, the most since the period ended March 26.

View the full story in Bloomberg.