Temasek set to sell first sterling bonds
Singapore state investor Temasek Holdings will soon sell sterling-denominated bonds for the first time in a move aimed at diversifying its funding sources.
Temasek has hired UBS, Deutsche Bank, HSBC and RBS to sell the bonds, according to a note sent to fund managers yesterday by one of the investment banks. Temasek plans a benchmark issue, industry jargon for an issue equivalent to at least $500m (£327m).
“The issue is expected to be launched in the near future, subject to market conditions,” the bank said in the note seen by Reuters.
The fund raising is understood not to be linked to any fresh investments in the UK. The sources could not be identified because the deal is not public.
Temasek, which manages a portfolio worth S$186bn (£88bn) at the end of March, has distanced itself from speculation it could invest in BP, which has approached several sovereign wealth funds for cash to ward off a takeover and help pay for the worst oil spill in US history.
Its biggest investment in the UK is Asia-focused Standard Chartered in which it has a stake of about 18 per cent.
Temasek has sold bonds worth $6bn under its existing $10bn medium-term note programme, mostly in the Singapore and US dollar, according to its annual report released earlier this month.
Its bonds have a weighted average maturity of 13 years and are rated AAA by both Moody’s and Standard & Poor’s.
Analysts said Temasek was taking advantage of the low interest rates to raise long-term funds at attractive levels.