Temasek prices 12-year and 30-year euro bonds at 0.5% and 1.25%

Both issuances were oversubscribed.

Temasek Financial (I) Limited (TFin-I), a wholly-owned subsidiary of Temasek Holdings, has priced its $749.77m (€500m) guaranteed notes due 2031(T2031-EUR) at 0.5% per annum and its $749.77m (€500m) guaranteed notes due 2049 (T2049-EUR) at 1.25% per annum, an announcement revealed.

The two bonds are the 17th and 18th bond issues under TFin-I’s $27.25b (US$20b) Guaranteed Global Medium Term Note Programme.

The T2031-EUR Temasek Bond was priced at a spread of 40 bps over the 12-year benchmark EUR Mid-swap and will be issued at 98.742% to give a yield to maturity of 0.609% per annum.

Meanwhile, the T2049-EUR Temasek Bond was priced at a spread of 80 bps over the 30-year benchmark EUR Mid-swap and will be issued at 98.348%, leading to a maturity of 1.317% per annum.

Both of its prices are oversubscribed. Investors under the two bonds will be paid annually and the offering is scheduled to close on 20 November.

TFin-I said that they intend to provide the net proceeds to Temasek and its investment holding companies to fund their ordinary course of business.