Temasek Holdings today announced that it will be exercising its rights of mandatory exchange with regard to its US$1 billion zero per cent guaranteed bonds (the "Bonds"), which are exchangeable into ordinary shares of Singapore Telecommunications Ltd ("SingTel"). The Bonds were issued on behalf of Temasek Holdings by its wholly-owned subsidiary, Fullerton Global Corporation Limited, in April 1998.

2. Under the terms and conditions of the Bonds, all Bondholders can exchange their Bonds for a fixed number of SingTel shares. For every US$1,000 face value of the Bonds held, Bondholders will be entitled to 496.904 SingTel shares based on the exchange price of S$3.23 per SingTel share and an exchange rate fixed at S$1.6050 to the US dollar. Based on the last trading price for SingTel shares of S$1.69 and an exchange rate of US$1=S$1.831, both as at 8 Feb 02, the 496.904 SingTel shares are worth US$458.64.
3. In lieu of exchanging for SingTel shares, Bondholders can instead choose to redeem their Bonds for cash. The redemption amount is set at the aggregate principal amount of the Bonds plus the Redemption Premium (as defined in the terms and conditions of the Bonds), the sum of which amounts to US$1,176.15 for every US$1,000 face value of the Bonds held.
4. This exercise is about one year ahead of the Bonds' maturity date, which is 2 Apr 2003. The key reason for Temasek calling for the exchange or redemption now is the commercial benefit to be derived from the current low interest rate environment as compared to the Bonds' yield to redemption of 4.1 per cent per annum.
5. Bondholders will be notified through Euroclear and Clearstream, Luxembourg about the exercise of the mandatory exchange option. Bondholders who wish to redeem their Bonds for cash can do so by completing the Bondholders Redemption Notice and arrange for its return through Euroclear or Clearstream, Luxembourg, by 23 Mar 02. Bondholders who wish to exchange their Bonds into SingTel shares can do so by completing the Bondholders Exchange Notice and arrange for its return through Euroclear or Clearstream, Luxembourg. The Mandatory Exchange Date is 2 Apr 02. Bondholders should consult with their own investment, tax, legal or other advisors in making a decision on whether to exercise their option to exchange or redeem their Bonds.
6. Temasek Holdings is committed to the on-going divestment programme for its companies, including SingTel, and regularly reviews its shareholdings in its companies to identify opportunities for rationalisation.

About the Bonds

This is a US$1 billion Zero Per Cent Guaranteed Exchangeable Bonds due Year 2003 issued by Fullerton Global Corporation Limited, a wholly-owned subsidiary of Temasek Holdings. The Bonds are exchangeable for existing ordinary shares of par value S$0.15 each in SingTel at an exchange price of S$3.23 per SingTel share and an exchange rate fixed at S$1.6050 to the US dollar.

The Bonds, listed on the Singapore Exchange, have an issue price of 100 per cent of the principal amount of the Bonds. The redemption price is fixed at 122.5 per cent of the principal amount, and the yield to redemption is 4.1 per cent per annum on a half-yearly basis.

For media enquiries, please contact:

Temasek Holdings
Eva Ho (Ms)
Vice President, Corporate Communications
Temasek Holdings (Pte) Ltd
DID: (65) 6828-6763
FAX: (65) 6828-6263
Mobile: 96176-234
Email: evaho@temasek.com.sg