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13 November 2019
WEALTH MANAGEMENT

Singapore’s Temasek mulls first euro-bond issuance since 2016

Temasek may join a wave of Asian and global issuers turning to Europe’s bond market, as negative interest rates and investor demand holds down borrowing costs versus dollars.

TAMASEK/BLOOMBERG


Singapore’s Temasek Holdings is eyeing its first euro-bond sale in almost four years, as low borrowing costs draw more Asian issuers to Europe, reported Bloomberg.

The state investor may sell 12-year and 30-year benchmark notes. The AAA rated issuer is the largest shareholder in a list of Singaporean companies including Singapore Airlines, oil-rig builder Keppel Corporation and Singapore Telecommunications.

China sold its first euro bond in 15 years last week, stoking a record year for emerging-market euro sovereign sales, and US companies have also issued an unprecedented amount of single-currency notes.

Temasek last month offered to acquire a controlling stake in Keppel for about SGD 4 billion ($3 billion). The state investor currently owns about 20 per cent of the company, the world’s biggest oil-rig builder.

Temasek, which has two-euro bonds outstanding, is more broadly seeking capital for a range of projects including 5G expansion at M1, the Singaporean phone company it helped acquire. The investment company is also seeking investments that will make it more palatable to environmentally minded clients.

Singapore’s export-reliant economy has seen a downturn in the second half of the year amid trade tensions between the US and China, two of its biggest trading partners. Prime Minister Lee Hsien Loong has said the city-state will be ‘lucky’ to achieve positive growth for the year.

Barclays, BNP Paribas as well as Credit Suisse Group and HSBC Holdings are helping to market the potential Temasek bond sale.


RELATED STORIES: SINGAPORE TELECOMMUNICATIONS PRINT THIS ARTICLE KEPPEL CORPORATION SINGAPORE AIRLINES TEMASEK HOLDINGS


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