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T2023-S$ Temasek Bond

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This is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. No offering is intended to be registered in the United States, and no offering is intended to be conducted in the United States. The bonds may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons. Not suitable for EU retail. No PRIIP KID available.

Bond Summary

Issuer

: Temasek Financial (IV) Private Limited

Guarantor

: Temasek Holdings (Private) Limited

Coupon Rate

: Fixed rate of 2.70% per year, payable every six months

Tenor

: 5 years

Issue Ratings

: Aaa by Moody’s and AAA by S&P 

Guarantor Ratings

: Aaa by Moody’s and AAA by S&P 

Maturity Date

: Wednesday 25 October 2023, redeemed at 100% of principal amount,
   unless previously redeemed and cancelled, or purchased and cancelled,
   as provided in the terms and conditions of the bond

Offer Size

: S$500 million

Placement

: S$200 million to institutional, accredited and other specified investors

Public Offer

: S$300 million to retail investors in Singapore

Issue Price

: S$1 per S$1 (being 100% of the principal amount)

Security Name

: TEMASEK S$500M 2.7% B 231025

SGX Stock Code

: TEKB

News On Chart
i
  • Chart Type
  • Interval
    1 day
Source: ShareInvestor
Verification:

Live Pricing Chart Disclaimer  

Please note the prices shown in the above chart are indicative of the latest sale price of the T2023-S$ Temasek Bond delayed by approximately 2 minutes.

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  • Please note that the amount here does not include transaction fees that would be incurred for buying.
  • Please note that you will not be entitled to receive the coupon on .
  • Please note that the amount here does not include transaction fees that would be incurred for selling.
  • Coupon payment date
  • Coupon payment (S$)
  • Sale date should not be same or earlier than purchase date.
    Sale date should be at least 2 working days after purchase date
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  • Please note that the amount here does not include transaction fees that would be incurred for buying.
  • Please note that you will not be entitled to receive the coupon on .
  • Please note that the amount here does not include transaction fees that would be incurred for selling.
  • Coupon payment date
  • Coupon payment (S$)
Verification:
Issue Date Coupon Rate Coupon payment frequency Maturity Date
25 October 2018 2.70% per annum Semi-annual 25 October 2023

Glossary

  • Coupon Payment Date being the expected date the coupon payment is remitted to the bondholder’s respective bank account
  • Business Day being a day (other than a Saturday or a Sunday or public holiday) on which banks and foreign exchange markets are open for business in Singapore
  • Record Date of the bond being the fifth (5th) business day before the coupon payment date
  • Transaction Date being the day you purchase or sell the bond
  • Settlement Date of the bond being the second (2nd) business day after Transaction Date
  • Closing Price of the bond of the selected date is as of 1706hrs
  • Purchase Price is the indicative bid price on the Singapore Exchange delayed by approximately 2 minutes. The actual price you transact at may vary.
  • Sell Price is the indicative ask price on the Singapore Exchange delayed by approximately 2 minutes. The actual price you transact at may vary.

Bond Calculator Disclaimer

Please note the calculator takes into account the following assumptions of the T2023-S$ Temasek Bond (“bond”):  

  • The bond calculator is strictly for the T2023-S$ Temasek Bond listed on the Singapore Exchange (SGX:TEKB)
  • Your actual investment returns may differ from the computed values as ‘dirty’ prices (inclusive of accrued interest) used for computation do not take into consideration third party transaction fees and are only to 4 decimal places
  • Quoted prices of dates earlier than today are Closing Prices of the selected date. Otherwise, quoted prices are indicative of the bid or ask prices of the bond delayed by approximately 2 minutes
  • Quoted prices are ‘dirty’ prices on the Singapore Exchange
  • The bond will cease to trade after the last Record Date (18 October 2023)
  • The Coupon Payment Dates, Settlement Dates and Record Dates are subject to the Ministry of Manpower’s declaration of public holidays in Singapore. These dates may vary after 2020

The calculator is for your convenience only and you have chosen to use it and rely on any results at your own risk. The results produced are based on third party information, such information may not be available in a timely manner and may be inaccurate. We do not guarantee the timeliness, accuracy or completeness of the third party information. All intellectual property rights in respect of such information and the calculator remain vested in their respective owners and you have no right, title or interest therein. You must not reproduce, distribute, retransmit or disseminate any such information. We will not under any circumstances accept responsibility or liability for any losses that may arise from a decision that you may make as a result of using the calculator. We reserve the right to make additions, deletions or modifications to the calculator at any time without prior notice. You may wish to consult your own investment, business, financial, legal, tax or other professional advisers prior to using the results of the calculator, or if you have any questions.  

This Frequently Asked Questions page is to be read together with the Offering Circular dated 3 August 2018, Pricing
Supplement dated 16 October 2018 and the Product Highlights Sheet dated 16 October 2018.

Please note that the offer of the T2023-S$ Temasek Bond has closed as of 23 October 2018. The information on this page, the Offering Circular, Pricing Supplement and Product Highlights Sheet are provided strictly for information only, and should be read as of their respective dates, unless otherwise specified or determined by the context.

Electronic copies of the Offering Circular, Pricing Supplement and Product Highlights Sheet are available here and at the SGX-ST website under the “Prospectus / Circulars / Offer Documents” section under the “Company Information” tab.

All dates and times are Singapore dates in times. 


ABOUT THE T2023-S$ TEMASEK BOND
 

What is a bond?

When you invest in a bond, you are essentially lending money to a bond Issuer.

A plain vanilla bond, such as the T2023-S$ Temasek Bond, is typically for a fixed period, called the tenor, and for a fixed interest rate, called the coupon.

An issuer of a plain vanilla bond is basically promising you two things, in return for the money that you are lending to the issuer:

        (i)    First, it promises to repay you the principal amount when the bond “matures” at the end of its tenor.

        (ii)   Second, it promises to pay you interest at the stipulated annual, half yearly, or quarterly intervals.

Once the principal amount of a bond is repaid at maturity and the issuer redeems the bond, the bond no longer exists.

Depending on the objectives of an issuer and market interest, a bond issuer may issue bonds with more complex terms, such as variable interest rates.

What is the T2023-S$ Temasek Bond?

Coupon : 2.70% per year (fixed coupon)
Tenor : 5 years
Issue : Temasek Financial (IV) Private Limited, 
a wholly-owned subsidiary of Temasek
Issue Ratings : Aaa by Moody's & AAA by S&P
Maturity Date : Wednesday 25 October 2023
First Interest Payment Date : Tuesday 25 April 2019
Guarantor : Temasek Holdings (Private) Limited (Temasek)
Guarantor Ratings : Aaa by Moody's & AAA by S&P
Security Name : TEMASEK S$500M 2.7% B 231025
Counter Name : TEMASEK 2.7% 231025XB#
Singapore Exchange (SGX) Stock Code : TEKB

Temasek unconditionally and irrevocably guarantees all interest payments of the T2023-S$ Temasek Bond and full repayment of the principal amount at maturity.

How was the interest rate determined?

To date, Temasek has been offering Temasek Bonds to institutional, accredited and other specified investors. Temasek would then determine the bond interest rate via a book building process, based on the bids in this market-based price discovery exercise.

The interest rate for the T2023-S$ Temasek Bond had similarly been determined based on bids from institutional, accredited and other specified investors in a book building process.

The same interest rate was offered to retail investors under the Public Offer. 

Why does the T2023-S$ Temasek Bond pay a different interest rate when compared with other retail bonds?

The interest rate on a bond is a function of, among other things, the risk that an investor takes when investing in a bond.

For a bond deemed of higher risk (usually because of the perceived or actual credit quality of the issuer), the interest rate is expected to be higher.

The interest rate also depends on other factors such as the tenor and market conditions at the time of the bond issuance.

The interest rate for the T2023-S$ Temasek Bond had been determined based on bids from institutional, accredited and other specified investors in a book building process for market price discovery.

Is the T2023-S$ Temasek Bond guaranteed by the Singapore Government?

No, the T2023-S$ Temasek Bond is not guaranteed by the Singapore Government.

The Singapore Government also does not guarantee any other debt obligations of Temasek, including other Temasek Bonds.

Is the T2023-S$ Temasek Bond guaranteed by Temasek?

Yes, Temasek unconditionally and irrevocably guarantees all interest payments of the T2023-S$ Temasek Bond and full repayment of the principal amount at maturity.

Temasek does not guarantee the performance of the T2023-S$ Temasek Bond in the market.

Will Temasek guarantee the interest payment and principal amount of the T2023-S$ Temasek Bond purchased on the secondary market?

Yes, Temasek unconditionally and irrevocably guarantees all interest payments of the T2023-S$ Temasek Bond and full repayment of the principal amount at maturity, whether or not the bond was purchased during the offer or on the secondary market.

Temasek does not guarantee the performance of the T2023-S$ Temasek Bond in the secondary market.

Is the interest amount fixed?

Yes, the interest amount is fixed at 2.70% per year. 

If Temasek guarantees the fixed interest rate of 2.70%, why do you say there is interest rate risk?

Temasek guarantees the fixed interest rate of 2.70% per year for the T2023-S$ Temasek Bond. 

You may buy or sell the T2023-S$ Temasek Bond in the market before the maturity date (Wednesday 25 October 2023).

The price of the T2023-S$ Temasek Bond in the market may rise or fall, depending on various factors, including the interest rate environment.

Interest rates in the market may rise or fall.

Generally, when market interest rates go up, the market price of bonds may fall, and vice versa. This represents interest rate risk.

Why is this so?

If the interest rates in the market are rising, newer bonds may be issued at higher interest rates.  Bond buyers have the option of investing in these higher interest rate bonds.  All things being equal, bondholders of existing bonds, with lower interest rates, may have to reduce their asking price, in order to give a similar effective interest yield to prospective bond buyers.

Hence, if you wish to sell your T2023-S$ Temasek Bond before maturity, you may suffer a partial loss on your principal amount if the market price of your T2023-S$ Temasek Bond (at the time of sale) is below your purchase price. 

Please refer to the section “Risk Factors” (page 18) of the Offering Circular (available for download here) for a discussion of certain risks in connection with an investment in the T2023-S$ Temasek Bond. Please also refer to the sections “Investment Suitability” and “Key Risks” (page 3 and 7 respectively) of the Product Highlights Sheet available for download here.


Please consult your own investment, business, financial, legal, tax or other professional advisers prior to investing.

What are the potential risks involved in this investment?

All investments carry risks, including investments into bonds.

Risks associated with bonds include default, interest rate, liquidity, inflation risks and other risks.

Potential investors should understand the dynamics, risks and opportunities associated before investing in any product, such as the T2023-S$ Temasek Bond.

Please refer to the section “Risk Factors” (page 18) of the Offering Circular for a discussion of certain risks in connection with an investment in the T2023-S$ Temasek Bond.

Please also refer to the sections “Investment Suitability” and “Key Risks” (page 3 and 7 respectively) of the Product Highlights Sheet.

The Offering Circular and Product Highlights Sheet are available here and at the SGX-ST website under the “Prospectus / Circulars / Offer Documents” section under the “Company Information” tab.

Please consult your own investment, business, financial, legal, tax or other professional advisers prior to investing.

Is the T2023-S$ Temasek Bond rated?

Yes, the T2023-S$ Temasek Bond is rated Aaa by Moody’s and AAA by S&P.
The ratings press releases are available here

Credit ratings are statements of opinion and are not a recommendation to buy, sell or hold the bond, and investors should perform their own evaluation as to whether the investment is appropriate. In particular, credit ratings are NOT intended for use by retail investors, and retail investors should NOT consider the credit ratings in making any investment decision.

All investors should contact their financial, investment, business, legal, tax or other professional advisers before making any decisions based on the credit ratings.

Where can I find more information on the T2023-S$ Temasek Bond?

Information is available in the Offering Circular and the Pricing Supplement. 

You may access the electronic copies here and at the SGX-ST website under the “Prospectus / Circulars / Offer Documents” section under the “Company Information” tab.

Please note that the Offering Circular and Pricing Supplement relate to the offer of the T2023-S$ Temasek Bond, which has closed as of 23 October 2018, and should be read as of their respective dates, as they have not been updated for any changes after completion of the offer. 

The video below may have relevant highlights for you.

Alternatively, you may wish to contact the Temasek Investor Relations team via
Email: bond@temasek.com.sg
Tel: +65 6828 2111 

When will the T2023-S$ Temasek Bond mature?

The T2023-S$ Temasek Bond will mature on Wednesday 25 October 2023.

100% of the principal amount, and the last interest payment, will be paid on redemption – that is, on the maturity date (Wednesday 25 October 2023).

Can the Issuer redeem the T2023-S$ Temasek Bond before the maturity date?

The T2023-S$ Temasek Bond may be redeemed prior to maturity by the Issuer for taxation reasons.

The T2023-S$ Temasek Bond may also be redeemed prior to maturity by the Issuer at a “make whole” amount, being an amount equal to the greater of:

(i) the principal amount of the bonds being redeemed; and

(ii) the amount determined by discounting the principal amount of the bonds plus all required remaining scheduled interest payments due on such bonds at the make whole call reference rate set out in the Pricing Supplement, plus a spread specified in the Pricing Supplement.

What is make whole?

The make whole call allows the Issuer to redeem the T2023-S$ Temasek Bond early before the maturity date by paying bondholders a lump sum “make whole” amount.

In the event a “make whole” event is triggered, Temasek will calculate the amount you will be paid, which is the greater of:

(i) the present value of remaining interest payments and principal amount; or

(ii) the principal amount.

Can I sell the T2023-S$ Temasek Bond back to Temasek?

No, you may only sell the T2023-S$ Temasek Bond in the secondary market. 

To find out more about selling the T2023-S$ Temasek Bond in the secondary market, please refer to "Selling the T2023-S$ Temasek Bond".

The market price of the T2023-S$ Temasek Bond may be above or below its issue price, depending on market conditions at the time, such as supply and demand, general market conditions and other factors.

Can I sell the T2023-S$ Temasek Bond through the ATM?

No, you cannot sell the T2023-S$ Temasek Bond through the ATM.

You may sell the T2023-S$ Temasek Bond in the secondary market.

To find out more about selling the T2023-S$ Temasek Bond in the secondary market, please refer to "Selling the T2023-S$ Temasek Bond".

The market price of the T2023-S$ Temasek Bond may be above or below its issue price, depending on market conditions at the time, such as supply and demand, general market conditions and other factors.

Is it possible to transfer the T2023-S$ Temasek Bond?

You may refer to the “Transfer of Securities” section on the Central Depository (CDP) website for more information on the transfer of securities.

Please also consult your own investment, business, financial, legal, tax or other professional adviser before investing. 

When will Temasek be issuing more bonds?

Temasek remains open and flexible to various financing options, including issuing subsequent bonds that are available to retail investors in the future, depending on objectives and market conditions. 


BALLOTING AND ALLOCATION OF THE T2023-S$ TEMASEK BOND

 

How do I check my holdings of the T2023-S$ Temasek Bond?

Successful applicants in the Public Offer would have had their T2023-S$ Temasek Bond allocations credited to their respective Central Depository (CDP) accounts or Central Provident Fund (CPF) Investment accounts.

Successful purchases of the T2023-S$ Temasek Bond in the secondary market will also be credited to the purchasers’ respective CDP or CPF Investment accounts.

You may also check your holdings of the T2023-S$ Temasek Bond via one of the following ways, depending on your source of funds used for application and/or purchase:

Cash

  • On your half-yearly CDP statements sent to your mailing address
  • Through the CDP Internet Service 
  • Through the CDP Phone service (6535 7511) using your Telephone PIN
  • Call CDP (6535 7511) to request for your latest statement to be sent to your mailing address
  • Visit the CDP Customer Service Centre with your IC or passport to obtain a copy of your latest CDP statement

CPF Savings
CPF Savings refer to your investible CPF Ordinary Account savings

  • Through one of the following bank services which your CPF Investment Account is with:
    • ATM (using a valid ATM Card)
    • Mobile Banking (using a valid Mobile Banking User ID and PIN)
    • Internet Banking

 

 

When will I receive the refund of my application money if I did not get the full allocation of the T2023-S$ Temasek Bond I applied for?

If you did not receive your full allocation of the T2023-S$ Temasek Bond, the refund of the balance of your application amount, net of fees and expenses, and without interest, is dependent on your source of funds used for application.

Cash
Your refund would have been credited within 24 hours after balloting of the T2023-S$ Temasek Bond on 24 October 2018, in your designated bank account.

Central Provident Fund (CPF) Savings
CPF Savings refer to your investible CPF Ordinary Account savings
Your refund would have been credited at the end of October 2018 in your CPF Investment Account. 

Why was my application for the T2023-S$ Temasek Bond rejected or invalid?

There could be multiple reasons why your application was invalid.

Common reasons include:

  • Making multiple applications under the Public Offer
  • Applying using a joint Central Depository (CDP) account
  • IC/Passport number differs in bank records and CDP records
  • Name differs in bank records and CDP records

You may wish to contact CDP at +65 6535 7511 for more information on the rejection/invalidation of your application for the T2023-S$ Temasek Bond.


INTEREST PAYMENTS AND RETURNS ON THE T2023-S$ TEMASEK BOND

 

When will I receive interest payments?


The interest rate of 2.70% per year for the T2023-S$ Temasek Bond, will be paid on or around 25 April and 25 October each year. If the payment date is not a business day*, payment will be made the following business day. Bondholders shall not be entitled to any additional interest or other amount in respect of any such postponed payment.

You may refer to the table below for the indicative interest payment dates these dates are subject to changes in the public holiday schedule from now to 2023.
 

Beginning of the Coupon Period End of the Coupon Period Actual Interest Payment Dates
25 October 2018 24 April 2019 25 April 2019
25 April 2019 24 October 2019 25 October 2019
25 October 2019 24 April 2020 27 April 2020
25 April 2020 24 October 2020 26 October 2020
25 October 2020 24 April 2021 26 April 2021
25 April 2021 24 October 2021 25 October 2021
25 October 2021 24 April 2022 25 April 2022
25 April 2022 24 October 2022 25 October 2022
25 October 2022 24 April 2023 25 April 2023
25 April 2023 24 October 2023 25 October 2023


Unless the T2023-S$ Temasek Bond has been previously redeemed and cancelled, or purchased and cancelled by the Issuer, each bondholder will receive the principal amount on the maturity date (Wednesday 25 October 2023), together with the last interest payment.

Interest payments will be made to the person who is the registered holder of the T2023-S$ Temasek Bond on the fifth (5th) business day before the interest payment date (record date). For example, the record date of the first interest payment on 25 April 2019 is 17 April 2019 (19 April 2019 is a public holiday in Singapore). If you buy the T2023-S$ Temasek Bond after the record date and before the interest payment date you will not be entitled to receive the interest payment on such interest payment date.

(* “business day” means a day (other than a Saturday or a Sunday or public holiday) on which banks and foreign exchange markets are open for business in Singapore)

 

How is the half yearly interest rate calculated?

The annual interest rate of 2.70% is calculated proportionately as a half yearly rate as follows:

                                  [(Number of days in the 6-month interest period)/365 days of the year] x 2.70%

How do I calculate the returns on my investment in the T2023-S$ Temasek Bond?

1 board lot of the T2023-S$ Temasek Bond comprises S$1,000 in principal amount with the issue price being S$1 per S$1 in principal amount.

The examples below are purely illustrative, and in particular, expenses and fees (if any) have not been taken into account in order to illustrate the different measures.

You will receive half yearly interest payments, for as long as you own the T2023-S$ Temasek Bond as of the record date for the relevant interest payment.

1) Yield-to-maturity (YTM), by far the most widely used return measure in the bond market, combines the coupon payments of a bond and the capital gain/ loss from holding the bond to maturity

You may use the bond calculator found here to calculate the YTM of the Temasek Bond. YTM is a widely used return measure in the bond market, which factors in coupon payments, the time to maturity, face value of the bond, and the capital gain/loss from holding the bond to maturity.

A bond's YTM is the internal rate of return required for the present value of all the future cash flows of the bond (face value and coupon payments) to equal the current bond price, as follows:

Bond’s present value/bond price =

 
 

Where C = coupon payment; n = total number of 6-month interest periods; Bond face value = S$1,000

As an illustration, if you had bought 1 board lot of the T2023S$ Temasek Bond with 2 years left to maturity at $0.950 and held it until maturity,

 

YTM = 5.37%

with your capital gain at maturity approximately equal to [(S$1.000 x 1,000) – (S$0.950 x 1,000)] = S$50 and total gain at maturity (having received 4 coupon payments) approximately equal to [($50 + ($13.46 + $13.54 + $13.46 +13.54)1] = $104.

You may also choose to look at other measures of returns for bonds, including:

 

2) Taking into account capital and interest gains


Assume you sold the bond 1 year later (having received 2 coupon payments):

Return = [(Capital gain/loss + Total interest payments) / Cost] x 100%  

Where:

Capital gain/loss = (Selling price – Purchase price) x No. of units

Cost = Purchase price x No. of units

Total interest payments = Half-yearly interest payment x 2 = S$13.50 x 2 = S$27
 

(a) an appreciated market price of S$1.020,  

Return = [(Capital gain + Total interest payments) / Cost] x 100% = {[(S$1.020 - S$1.000) x 1,000 + S$27] / (S$1.000 x 1,000)} x 100% = 4.70% 

 

(b) a depreciated market price of S$0.980,  

Return = [(Capital loss + Total interest payments) / Cost] x 100% = {[(S$0.980 - S$1.000) x 1,000 + S$27] / (S$1.000 x 1,000)} x 100% = 0.70%
 

3) Current yield: relating annual coupon of the bond to its market price

If the market price of the T2023-S$ Temasek Bond is S$0.980, its current yield would be approximately equal to [S$27 / (S$0.980 x 1,000)] x 100% = 2.76%, which is greater than the coupon rate of 2.70%.

Conversely, if the market price of the T2023-S$ Temasek Bond is S$1.020, its current yield would be approximately equal to [(S$27 / (S$1.020 x 1,000)] x 100% = 2.65%, which is less than the coupon rate of 2.70%.

Footnotes:

1 Actual coupon payments will vary depending on number of days in each coupon payment period. See “How is the half yearly interest rate calculated?” above for more information.

 

 

How much interest do I receive each period?

The interest is paid half yearly at the end of every 6 months.

If the date falls on a weekend or public holiday, the payment is made on the following business day.

The amount of interest you will receive depends on the principal amount of the T2023-S$ Temasek Bond you hold.  The principal amount is the sum that you will receive upon maturity of the T2023-S$ Temasek Bond. The principal amount will be paid to you when the T2023-S$ Temasek Bond is redeemed upon maturity, together with the last interest payment.

So long as you hold the T2023-S$ Temasek Bond as of the fifth (5th) business day before the interest payment date (record date), the interest received at the end of every 6-month interest period is calculated as follows:

                      [(Number of days in the 6-month interest period)/365 days of the year] x 2.70% x principal amount

If I invest using my Central Provident Fund (CPF) savings, where do I receive my interest payments, capital gains/principal amount?

CPF Savings refer to your investible CPF Ordinary Account savings.  

If you invest using your investible CPF Savings, interest payments, repayment of the principal amount at maturity of the T2023-S$ Temasek Bond and/or proceeds from the sale of your T2023-S$ Temasek Bond in the secondary market, including capital gains (if applicable), will be credited to your CPF Investment Account.

If I sell the T2023-S$ Temasek Bond in the secondary market, do I still continue to receive the interest payments?

You will receive the interest payments, so long as you continue to own the T2023-S$ Temasek Bond as of the record date for the relevant interest payment.

The record date, which is the fifth (5th) business day before the interest payment date, is a cut-off date where the Issuer will determine which bondholders are eligible to receive the interest payment. 

You may check the record date on SGXNET or Temasek’s website prior to each interest payment date.

Once you have sold the T2023-S$ Temasek Bond, you will no longer own the bond and hence will not receive subsequent interest payments.

Are the interest payments and principal amount of the T2023-S$ Temasek Bond affected by Temasek’s performance?

The interest payments and principal amount of the T2023-S$ Temasek Bond are not affected by the Issuer's or Temasek's performance. The interest amount is fixed at 2.70% per year while 100% of the principal amount, and the last interest payment, will be paid on the maturity date (25 October 2023). 

Are the interest payments and principal amount of the T2023-S$ Temasek Bond affected by Temasek’s performance in the secondary market?

The interest payments and principal amount of the T2023-S$ Temasek Bond are not affected by its price in the secondary market. The interest amount is fixed at 2.70% per year while 100% of the principal amount, and the last interest payment, will be paid on the maturity date (25 October 2023). 

 


SELLING THE T2023-S$ TEMASEK BOND IN THE SECONDARY MARKET

Please see the table below for key information on the T2023-S$ Temasek Bond.

You may find more trading and pricing information of the T2023-S$ Temasek Bond here.

Security Name

TEMASEK S$500M 2.7% B 231025

Counter Name TEMASEK 2.7% 231025XB#

Singapore Exchange (SGX) Stock Code

TEKB

Central Depository (CDP) Name

TEMASEKB231025

Board Lot Size

S$1,000 in principal amount

Listing Date

Friday, 26 October 2018

Central Provident Fund Investment Scheme (CPFIS) Eligibility

 

Yes

Supplementary Retirement Scheme (SRS) Eligibility

Yes

 
 
 

Can I sell the T2023-S$ Temasek Bond in the secondary market?

Yes, the T2023-S$ Temasek Bond can be sold in the secondary market.

The market price of the T2023-S$ Temasek Bond may be above or below its issue price, depending on market conditions at the time, such as supply and demand, general market conditions and other factors.

Can I sell the T2023-S$ Temasek Bond before the maturity date? Will I lose any money if I sell the T2023-S$ Temasek Bond before the maturity date?

You can choose to sell your T2023-S$ Temasek Bond in the secondary market and before the maturity date (Wednesday 25 October 2023, if not redeemed earlier by the Issuer).

Your investment return will depend on the prevailing market price at the time you sell, which may be above or below your purchase price of your T2023-S$ Temasek Bond.

If the value of the T2023-S$ Temasek Bond increases and is higher than par value by the time the T2023-S$ Temasek Bond reaches maturity, will I get a sum amounting to the higher value or just my principal?

1 board lot of the T2023-S$ Temasek Bond comprises S$1,000 in principal amount with the issue price being S$1 per S$1 in principal amount.

The redemption amount at maturity will be 100% of the principal amount of the T2023-S$ Temasek Bond, regardless of its prevailing market value.

If you had bought 1 board lot of the T2023-S$ Temasek Bond at a market price of S$1.08, you will receive a principal amount of S$1,000 (S$1.00 x 1,000) at maturity.

 


BUYING THE T2023-S$ TEMASEK BOND IN THE SECONDARY MARKET

Please see the table below for key information on the T2023-S$ Temasek Bond.

You may find more trading and pricing information of the T2023-S$ Temasek Bond here.

Security Name

TEMASEK S$500M 2.7% B 231025

Counter Name TEMASEK 2.7% 231025XB#

Singapore Exchange (SGX) Stock Code

TEKB

Central Depository (CDP) Name

TEMASEKB231025

Board Lot Size

S$1,000 in principal amount

Listing Date

Friday, 26 October 2018

Central Provident Fund Investment Scheme (CPFIS) Eligibility

Yes

Supplementary Retirement Scheme (SRS) Eligibility

Yes

 
 

Can I buy more of the T2023-S$ Temasek Bond in the secondary market?

Yes, the T2023-S$ Temasek Bond can be bought in the secondary market.  

The market price of the T2023-S$ Temasek Bond may be above or below its issue price, depending on market conditions at the time, such as supply and demand, general market conditions and other factors.

Can I use my Central Provident Fund (CPF) Savings to buy the T2023-S$ Temasek Bond in the secondary market?

CPF Savings refer to your investible CPF Ordinary Account savings. 

The T2023-S$ Temasek Bond is included under the CPF Investment Scheme – Ordinary Account (“CPFIS-OA”). 

Secondary Market Purchases after Completion of Offer
CPF members CAN use their investible CPF savings to purchase the T2023-S$ Temasek Bond from the secondary market.

Conditions for using CPF Savings to invest in T2023-S$ Temasek Bond
To invest under CPFIS-OA, you need to be at least 18 years old, not be an undischarged bankrupt, have a valid CPF Investment Account with a CPFIS agent bank*, and have more than S$20,000 in your CPF Ordinary Account.

Note for new CPFIS investors:
New CPFIS investors will need to complete the Self-Awareness Questionnaire (SAQ) before they can invest under CPFIS. The SAQ helps them assess if CPFIS is suitable for them. 

The SAQ starts with learning modules on investment concepts, products and charges under CPFIS. They will need to log in with their SingPass to attempt the quiz. If they had completed the SAQ previously, they can log in with their SingPass to check their CPFIS SAQ status. The SAQ can be found here

*Applications using CPF Savings must be made through a CPF Investment Account with a CPFIS agent bank (DBS, OCBC, or UOB) with the applicant’s CPF statement.
Please be aware that there will be fees associated with investments made through your CPF Investment Account.

If your application for the T2023-S$ Temasek Bond using your CPF Savings is unsuccessful, your refund will be credited into your CPF Investment Account at the end of the month (of application).  

What charges are involved if I use my Central Provident Fund (CPF) Savings to buy the T2023-S$ Temasek Bond in the secondary market?

CPF Savings refer to your investible CPF Ordinary Account savings

Please refer to the table below for the relevant charges for DBS/POSB, OCBC and UOB:

 

DBS/POSB

OCBC

UOB

Upon Successful Application

S$2.50 per S$1,000 in principal amount of bonds, subject to a maximum of S$25 per transaction

S$2.50 per S$1,000 in principal amount of bonds, subject to a maximum of S$25 per transaction

S$2 per S$1,000 in principal amount of bonds, subject to a maximum of S$20 per transaction

Service Fee

S$2 per counter per quarter, subject to a minimum charge of S$5 per quarter

S$2 per counter per quarter

S$2 per counter per quarter

Please also refer to the relevant bank’s fee schedule for more information: DBS/POSB, OCBC, UOB

Can I use my Supplementary Retirement Scheme (SRS) funds to apply for the T2023-S$ Temasek Bond in the secondary market?

You should consult your stockbroker and the relevant bank in which you hold your SRS account with if you wish to purchase the T2023-S$ Temasek Bond from the secondary market after the listing of the T2023-S$ Temasek Bond on the SGX-ST using SRS funds. 

Can I buy the T2023-S$ Temasek Bond using a joint Central Depository (CDP) securities account in the secondary market?

You can use your joint CDP securities account, provided it is linked to a trading account, to buy the T2023-S$ Temasek Bond in the secondary market. 

You should consult your stockbroker and the relevant bank in which you hold your joint CDP account with if you wish to purchase the T2023-S$ Temasek Bond from the secondary market.


OTHERS

What is a Central Depository (CDP) securities account?

A CDP securities account is a securities investment account with the Central Depository of the Singapore Exchange (SGX).

It enables investors to view and manage their various investments with multiple brokers.

To invest in the T2023-S$ Temasek Bond, you will need a CDP securities account linked to a Direct Crediting Service (DCS) bank account or your Central Provident Fund (CPF) Investment Account in order for your interest payments to be credited to your bank account. 

Application for DCS via:

  • The CDP Internet Service (only applicable if you have been issued a security token by CDP)
  • Submission of a completed CDP securities account application form (available here) in person at the CDP Service Counter
  • Participating DCS banks in Singapore are: Citibank, DBS, POSB, HSBC, Maybank, OCBC, Standard Chartered Bank, UOB
      

More information can be found on DCS here.

Application for a CPF Investment Account via a CPF Investment Scheme (CPFIS) agent bank:
Please refer to the relevant bank's CPF Investment Account website for more information: DBS, POSB, OCBC, UOB
 

How can I open a Central Depository (CDP) securities account?

You would need the following when applying to open a CDP securities account in person:

(i)    Your original IC or passport
(ii)    Completed CDP securities account application form (available here)

Address of CDP Service Counter
9 North Buona Vista Drive
#01-19/20
The Metropolis
Singapore 138588

Operating Hours
Mondays to Fridays – 8.30am to 5pm
Saturdays – 8.30am to 12pm
Closed on Sundays and Public Holidays

CDP Contact Info
CDP Website

Hotline
+65 6535 7511
24-hour automated answering service for information on CDP account related services

To Speak To CDP Customer Service Officers
•  Mondays to Fridays: 8.30am to 5pm
•  Saturdays: 8.30am to 12pm
•  Sundays and Public Holidays: Closed

There are no fees charged for opening a CDP securities account. 

What is a corporate action?


Corporate actions undertaken by a company can include a range of events, such as new issuances of shares or bonds, redemption of outstanding bonds, a buyback of shares or bonds or an acquisition or disposal of assets. If the company undertakes a corporate action, the market price of its shares or bond may be impacted.

Generally, listed companies are under an obligation to announce information to the market that would be likely to materially impact the price or value of its securities, among other things. There are a range of disclosure rules that apply to listed companies: an example of such rules is Chapter 7 of the Singapore Exchange’s Listing Rules, entitled “Continuing Obligations”, which applies to companies listed on the Main Board of the Singapore Exchange. Companies with bonds listed on the Singapore Exchange are also subject to the obligation to disclose information which may have a material effect on the price or value of its bonds, among other things. Different exchanges will have different rules that apply to companies whose securities are listed on their exchanges.

When a company with listed securities undertakes a corporate action, it may have to make an announcement in accordance with the continuing disclosure obligations to which it is subject, in particular if the corporate action will materially impact the price or value of its securities. 

How do corporate actions affect your investment?

The information below is focused on investments in bonds. There are other factors which apply to investments in shares.

A corporate action may have an impact on investors because it can affect the market price of bonds.

Bonds listed on the Main Board of the Singapore Exchange are traded in the secondary market and market prices are affected by the financial fundamentals of the company (most notably the strength of a company’s balance sheet and its ability to meet its payment obligations), as well as wider market sentiment.

The market price of the bonds can change based on the perceived financial strength, the interest rate environment, or investors’ expectations about the company and/or the wider market.

If you are an investor and you are considering whether to buy, sell or hold a company’s bonds, keeping up to date on its corporate actions and announcements, including the company’s periodic disclosure of its financial performance, is one way for you to understand the company’s financial and business health, and to ensure that you are aware of the latest developments affecting the company.

However, it is important that you consider these announcements as one data point, and that you make an effort to reach your own informed views about whether to buy, sell or hold securities, taking into account relevant information and your own personal circumstances, including risk tolerance. Announcements made by the company do not constitute financial or investment advice. You should consult your own investment, business, financial, legal, tax or other professional advisers prior to investing.  

If you have questions in relation to the T2023-S$ Temasek Bond, please contact the Investor Relations team via: 

Email:  bond@temasek.com.sg

Tel: +65 6828 2111