Investor FAQs

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1) Why does Temasek issue bonds?

We issue Temasek Bonds as public markers of our credit quality. They increase our funding flexibility and expand our stakeholder base.

2) What were the proceeds of Temasek’s bond issues used for?

The proceeds were used to fund the ordinary course of business of Temasek and our investment holding companies.

3) How many bonds has Temasek issued under the Medium Term Note Programme?

Since 2005, Temasek has issued 15 Temasek Bonds in Singapore dollars, US dollars, British pounds sterling and the euro, with debt maturity up to 2050.

On 21 September 2015, our maiden T2015-US$ bond matured.

As at 31 March 2017, the total amount of our 14 outstanding Temasek Bonds totalled S$11.6 (US$8.3) billion, with a weighted average maturity of over 12 years.

4) Why did Temasek establish a Euro-commercial Paper Programme?

Our US$5 billion Euro-commercial Paper (ECP) Programme was established in February 2011 to complement the longer dated Temasek Bonds under our Guaranteed Global Medium Term Note Programme. Together, these debt issuance programmes form the major building blocks of our financing framework, providing a flexible balance between long and short term funding.

As at 31 March 2017, the total amount of our outstanding ECP Programme totalled S$1.2 (US$0.9) billion, with a weighted average maturity of about one month.

5) Does Temasek have any benchmarks or targets for gearing ratios?

Our Board sets our overall debt limit, taking into account our shareholder funds, cash flow and credit profile. Temasek has a conservative gearing stance, and closed the financial year ended 31 March 2017 in a net cash position as an investment company.

 
6) Does Temasek pay dividends to its shareholder?

Temasek declares dividends annually, based on the profit we earn, in accordance with our dividend policy.

Our Board ensures that our dividend policy balances the sustainable distribution of profits as dividends to our shareholder with the retention of profits for reinvestment to generate future returns. The policy also takes into account our constitutional responsibility to protect Temasek's past reserves. Our Board recommends the dividends for our shareholder's consideration at the annual general meeting.

7) How will the Net Investment Returns (NIR) framework affect Temasek?

Under the NIR framework, the Government is permitted to spend up to 50% of the expected long term real rates of return of GIC, the Monetary Authority of Singapore and Temasek.

The NIR framework does not affect, change or impact Temasek’s dividend policy, strategies and operations as a long term investor, and our responsibility to protect Temasek’s past reserves.
 

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8) Does the shareholder inject capital into Temasek?

Our shareholder has injected capital into Temasek from time-to-time as part of their asset allocation decision.

9) Do the financials in the Temasek Review and Offering Circular reflect Temasek’s performance as an investment company?

The Credit Profile section of our Temasek Review and Business of Temasek section of our Offering Circular include key credit parameters based on the financials of Temasek as an investment company. Our Credit Profile provides a quantitative snapshot of our credit quality and the strength of Temasek’s financial position. Temasek’s overall performance as an investment company is also highlighted in our Temasek Review and Offering Circular, through measures such as total shareholder returns over various time periods.




1Based on the financial information of Temasek as an investment company, namely, Temasek Holdings (Private) Limited (THPL) and its Investment Holding Companies (IHCs). IHCs are defined as THPL’s direct and indirect wholly owned subsidiaries, whose boards of directors or equivalent governing bodies comprise employees or nominees of THPL, wholly owned Temasek Pte. Ltd. (TPL), and/or TPL’s wholly owned subsidiaries. The principal activities of THPL and its IHCs are that of investment holding, financing, and/or the provision of investment advisory and consultancy services.

 

10) Does Temasek guarantee its portfolio companies’ debts?

As a policy, Temasek does not issue any financial guarantees for the obligations of our portfolio companies.

Investment Themes

Investment Themes

Our investment activities continue to be guided by four investment themes and the long term trends they represent.

PORTFOLIO PERFORMANCE

PORTFOLIO PERFORMANCE

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