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T2026-S$ Temasek Bond

T2026-S$ Temasek Bond

This website, and our social media sites, contain information which is for information purposes only. They do not constitute an offer nor an invitation nor a recommendation to subscribe to or to purchase, to hold or sell securities, nor is the information contained herein meant to be complete or to serve as a basis for any kind of obligation, contractual or otherwise. Additionally, third-party information distributed on our social media sites may not represent our views and unless otherwise expressly indicated, we take no responsibility for, nor do we endorse, any such information.

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 or UK retail. No EU PRIIPs or UK PRIIPs KID available.

Issuer

: Temasek Financial (IV) Private Limited

Guarantor*

: Temasek Holdings (Private) Limited

Coupon Rate

: Fixed rate of 1.8% 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

: 24 November 2026, unless previously redeemed and cancelled, or purchased and cancelled, as provided in the terms and conditions of the T2026-S$ Temasek Bond

Offer Size

: S$500 million

Placement

: S$250 million to institutional, accredited and other specified investors

Public Offer

: S$250 million to retail investors in Singapore

Issue Price

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

Security Name : TEMASEK S$500M 1.8% 261124
SGX Stock Code : TEMB

 Please note that the offer of the T2026-S$ Temasek Bond has closed as of 22 November 2021, 12 Noon.

*Do note that there is no certainty that the Guarantor will always remain solvent and able to fulfil its obligations under the guarantee.

This Frequently Asked Questions page is to be read together with the Offering Circular dated 19 July 2021 and Pricing Supplement dated 15 November 2021.  

If you have further questions, please consult your own investment, business, financial, legal, tax or other professional advisers prior to investing. 

Please note that the offer of the T2026-S$ Temasek Bond has closed as of 22 November 2021. The information on this page, the Offering Circular, Pricing Supplement and Product Highlights Sheet dated 15 November 2021 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 Singapore Exchange (SGX-ST) website under Fixed Income > Company Information > Prospectus / Circulars / Offer Documents > Filter by Company/Security Name “Temasek Financial (IV) Private Limited”. 

All dates and times are Singapore dates and times.

More FAQs on Temasek, its bond programmes and bond issuances can be found here

 

ABOUT THE T2026-S$ TEMASEK BOND

 

What is the T2026-S$ Temasek Bond?

The T2026-S$ Temasek Bond issued by Temasek Financial (IV) Private Limited, a wholly-owned subsidiary of Temasek. 

Temasek Holdings (Private) Limited is the Guarantor, and fully guarantees all payments of interest due, and the full repayment of the principal amount at maturity of the T2026-S$ Temasek Bond.

There is no certainty that the Guarantor will always remain solvent and able to fulfil its obligations under the guarantee. Read the Offering Circular and Pricing Supplement in full to understand the risks involved.

 

Placement

To institutional, accredited and other specified investors

Public Offer

To retail investors in Singapore

Issuer Temasek Financial (IV) Private Limited
Guarantor Temasek Holdings (Private) Limited
Interest Rate Fixed rate of 1.8% per year, payable every six months
Tenor 5 years
Maturity Date

24 November 2026, unless previously redeemed and cancelled, or purchased and cancelled, as provided in the terms and conditions of the bond

Offer Size S$250 million  S$250 million

Where can I find more information on the T2026-S$ Temasek Bond?

Information on the T2026-S$ Temasek Bond is available in the Offering Circular and the Pricing Supplement.  

You may access the electronic copies here and at the SGX-ST website under Fixed Income > Company Information > Prospectus / Circulars / Offer Documents > Filter by Company/Security Name “Temasek Financial (IV) Private Limited".

Please note that the Offering Circular, Pricing Supplement and Product Highlights Sheet relate to the offer of the T2026-S$ Temasek Bond 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 highlights relevant for you.

If you have any questions, you may contact the Investor Relations team:

Email: bond@temasek.com.sg

Tel: +65 6828 2111

When will the T2026-S$ Temasek Bond mature? Can Temasek redeem the T2026-S$ Temasek Bond before the maturity date?

The maturity date of the T2026-S$ Temasek Bond is Tuesday, 24 November 2026.

100% of the principal amount, and the last interest payment, will be due upon redemption – that is, on the maturity date (24 November 2026).

The T2026-S$ Temasek Bond may be redeemed prior to maturity by Temasek for taxation reasons. Bondholders will be paid 100% of the principal amount together with accrued interest up to (but excluding) the date of redemption.

The T2026-S$ Temasek Bond may also be redeemed prior to maturity by Temasek at a “make whole” amount together with accrued interest up to (but excluding) the date of redemption. The “make whole” amount is an amount equal to the greater of:

  1. the principal amount of the bonds being redeemed; or

  2. 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? Has Temasek exercised a make whole call on any of its bonds before?

The make whole call allows the Issuer to redeem the T2026-S$ Temasek Bond early before the maturity date by paying bondholders a lump sum “make whole” amount together with accrued interest up to (but excluding) the date of redemption.

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

  1. the principal amount of the bonds being redeemed; or

  2. 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.

To date, Temasek has never exercised a make whole call on any Temasek Bond.

Full details of the make whole call are set out in the terms and conditions of the T2026-S$ Temasek Bond set out in the Offering Circular (page 100), read with the Pricing Supplement.

 

 

INTEREST PAYMENTS & RETURNS OF THE

T2026-S$ TEMASEK BOND

 

How often and when will I receive the interest payments?

Frequency of interest payments

The interest payment for the T2026-S$ Temasek Bond is due to be paid on or around 24 May and 24 November each year. If the payment date is not a business day*, payment will be made the following business day. Bondholders will not be entitled to any additional interest or other amount in respect of any such postponed payment.

Please refer to the table below for the indicative interest payment dates – these dates are subject to changes to the public holiday schedule.

Beginning of the Interest Period End of the Interest Period Indicative Interest Payment Date
24 November 2021 23 May 2022 24 May 2022
24 May 2022 23 November 2022 24 November 2022
24 November 2022 23 May 2023 24 May 2023
24 May 2023 23 November 2023 24 November 2023
24 November 2023 23 May 2024 24 May 2024
24 May 2024 23 November 2024 25 November 2024
24 November 2024 23 May 2025 26 May 2025
24 May 2025 23 November 2025 24 November 2025
24 November 2025 23 May 2026 25 May 2026
24 May 2026 23 November 2026 24 November 2026

Unless the T2026-S$ Temasek Bond has been previously redeemed and cancelled, or purchased and cancelled by the Issuer, the principal amount will be due for repayment to each bondholder on the maturity date (Tuesday, 24 November 2026), if not redeemed earlier by the Issuer, together with the last interest payment.

* “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 do I calculate the returns on my T2026-S$ Temasek Bond investment?

1 board lot of the T2026-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. Do also read the Offering Circular and Pricing Supplement in full to understand the risks involved.

You will be entitled to receive half yearly interest payments, for as long as you own the T2026-S$ Temasek Bond as of the record date for the relevant interest payment.

 

If you were allocated the bond at issuance and intend to hold till maturity:

Your return per annum will be 1.8%

Return over the life of the bond = annual return x tenor of the bond (in years) = 1.8% x 5 = 9% 

 

If you purchased the bond in the secondary market and/or intend to sell before maturity:

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

YTM is a widely used return measure in the bond market, which factors in interest 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 interest payments) to equal the current bond price, as follows:

Bond’s present value/bond price =

Where C = interest 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 T2026-S$ Temasek Bond with 2 years left to maturity at S$0.950 and held it until maturity,

YTM = 4.44%

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 interest payments) approximately equal to [(S$50 + (S$8.93 + S$9.07 + S$8.93 +S$9.07)^1] = S$86.

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$9 x 2 = S$18

(a) an appreciated market price of S$1.010,  

Return = [(Capital gain + Total interest payments) / Cost] x 100% = {[(S$1.010 - S$1.000) x 1,000 + S$18] / (S$1.000 x 1,000)} x 100% = 2.8%

(b) a depreciated market price of S$0.990,  

Return = [(Capital loss + Total interest payments) / Cost] x 100% = {[(S$0.990 - S$1.000) x 1,000 + S$18] / (S$1.000 x 1,000)} x 100% = 0.8%

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

If the market price of the T2026-S$ Temasek Bond is S$0.990, its current yield would be approximately equal to [S$18 / (S$0.990 x 1,000)] x 100% = 1.82%, which is greater than the interest rate of 1.8%. 

Conversely, if the market price of the T2026-S$ Temasek Bond is S$1.010, its current yield would be approximately equal to [(S$18 / (S$1.010 x 1,000)] x 100% = 1.78%, which is less than the interest rate of 1.8%. 

 

Footnotes:

1 Actual interest payments will vary depending on number of days in each interest payment period. See “How much interest do I receive each period?” below for more information.

Is payment of interest on a fixed date every 6 months?

The interest is payable half yearly at the end of every 6 months. If the date falls on a weekend or public holiday, the payment is due on the following business day. Temasek will make a Coupon Payment announcement on SGX approximately one month ahead of payment. You may refer to these announcements for the respective payment dates.

The interest payment is calculated proportionately as [(Number of days in the 6-month period)/365 days of the year] x 1.8% x bond principal amount.

How much interest do I receive each period?

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

If the date falls on a weekend or public holiday, the payment is due on the following business day. Temasek will make a Coupon Payment announcement on SGX approximately one month ahead of payment. You may refer to these announcements for the respective payment dates.

The amount of interest that is payable depends on the principal amount of the T2026-S$ Temasek Bond you hold. The principal amount is the sum that is payable upon maturity of the T2026-S$ Temasek Bond. The principal amount is payable to you when the T2026-S$ Temasek Bond is redeemed upon maturity, together with the last interest payment.

So long as you hold the T2026-S$ Temasek Bond as of the record date for the relevant interest payment, the interest payable 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 1.8% x bond principal amount

If I sell the T2026-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 T2026-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 T2026-S$ Temasek Bond, you will no longer own the bond and hence will not receive subsequent interest payments.


ALLOCATION 

 

When will the results of the Offer be announced?

The allocation results of the Offer have been announced on the SGX-ST website on Tuesday, 23 November 2021 or you may find the announcement on our T2026-S$ Temasek Bond Download Section page here.

How will I know if my application is successful, partially successful, or unsuccessful?

CDP Internet users will be able to check on the crediting status by logging in to the CDP portal on Wednesday, 24 November 2021 after 5pm. CDP will also be sending a confirmation/e-confirmation note to investors who have been allotted the T2026-S$ Temasek Bond. 

CDP will notify applicants with invalid applications on the reason for invalidation, following the release of allocation results.

How did Temasek allocate the T2026-S$ Temasek Bond?

The demand for the Public Offer and the Placement amounted to about S$649 million and S$1,542 million, respectively. Temasek allocated the T2026-S$ Temasek Bond to as many retail investors as possible.

All applicants who submitted valid applications under the Public Offer have been allocated all or a proportion of the bonds they applied for.

If an applicant under the Public Offer is unsuccessful, in whole or part, for whatever reason, the unsuccessful proportion of the application amount will be refunded without interest. 

The allocation results of the Public Offer and the Placement can be found on our T2026-S$ Temasek Bond Download Section page here.

When will I receive the refund of my application money if I did not get the full allocation of the T2026-S$ Temasek Bond I applied for?

If you did not receive your full allocation of the T2026-S$ Temasek Bond, the refund, net of fees and expenses, and without interest, will be credited within 24 hours after allocation of the T2026-S$ Temasek Bond on Tuesday, 23 November 2021, in your designated bank account. 

Why was my application for the T2026-S$ Temasek Bond rejected or invalidated?

There could be multiple reasons why your application was invalid.

Common reasons include:

  • Making multiple applications under the Public Offer
  • Applying using a joint CDP account
  • Mismatch between NRIC/FIN/Passport number in bank records and CDP records
  • Mismatch between name in bank records and CDP records
  • CDP account is closed or suspended

CDP will notify rejected applicants of the reason for rejection following the release of allocation results. 

Why didn't I get my full allocation?

We appreciate your support for the T2026-S$ Temasek Bond. However, we were unable to allocate everyone their full application amount due to oversubscription. Demand for the Public Offer was about S$649 million, which exceeded the final Public Offer size of S$250 million.  

How do I check my holdings of the T2026-S$ Temasek Bond?

Successful applicants in the Public Offer will have their T2026-S$ Temasek Bond allocations credited to their respective CDP accounts on Wednesday, 24 November 2021 after 5pm.

You may check your holdings of the T2026-S$ Temasek Bond through the CDP portal

 

TRADING THE T2026-S$ TEMASEK BOND IN THE SECONDARY MARKET

 

Please see the table below for key information on the T2026-S$ Temasek Bond.

You may find more trading and pricing information of the T2026-S$ Temasek Bond here.

Security Name

TEMASEK S$500M 1.8% B 261124

Counter Name TEMASEK 1.8% 261124XB#

Singapore Exchange (SGX) Stock Code

TEMB

Central Depository (CDP) Name

TEMASEKB261124

Board Lot Size

S$1,000 in principal amount

Listing Date

Thursday, 25 November 2021

Central Provident Fund Investment Scheme (CPFIS) Eligibility

No

Supplementary Retirement Scheme (SRS) Eligibility

Yes

 
 
 

What is the market price of the T2026-S$ Temasek Bond now?

You can check the trading prices of the T2026-S$ Temasek Bond on the SGX-ST website.

Can I trade the T2026-S$ Temasek Bond?

Yes, the T2026-S$ Temasek Bond can be bought or sold in the market once it is listed and quoted on the Main Board of the SGX-ST, on Thursday, 25 November 2021, 9am.

For the purposes of trading, each board lot of the T2026-S$ Temasek Bond will comprise S$1,000 in principal amount. 

Dealings in the T2026-S$ Temasek Bond will be carried out in Singapore Dollars, and will in each case be effected for settlement through the CDP on a scripless basis.

The T2026-S$ Temasek Bond may also be traded over-the-counter on the Debt Securities Clearing and Settlement System. 

The market price of the T2026-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 including interest rates and other factors.

 

OTHERS

 

Who is considered a U.S. person?

U.S. person includes:

  • A person, regardless of nationality, residing in the United States  
  • A transient visitor in Singapore who is a resident of the United States 
  • A corporation, partnership, or other organisation organised under the laws of the U.S.  

Non-U.S. person includes:

  • Any person, including a U.S. citizen, residing in Singapore or in any other country other than the United States

If you have questions in relation to the T2026-S$ Temasek Bond, please contact the Investor Relations team via: 

Email:  bond@temasek.com.sg

Tel: +65 6828 2111  

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