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

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

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.

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 

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).

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.

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.

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 through CDP or the bank which your CPF Investment Account is linked to.

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.
 

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 (5^th) 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)

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%

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.

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:

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%
 

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.
 

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 (5^th) 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

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.

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 (5^th) 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.

Yes, the T2023-S$ Temasek Bond can be bought or 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.

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.

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