There are other factors which apply to investments in shares. Singapore 138588 Please also consult your own investment, business, financial, legal, tax or other professional adviser before investing. Temasek had a net portfolio value of S$313 billion as of March 31, 2019, up 1.6% from the year prior. 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. This represents interest rate risk. However, based on the share price of $5.74 on 31 March 2020, the ex-rights price will be even lower at S$4.10. Corporate actions undertaken by a company can include a range of events, such as new issuances of shares or bonds, redemption of outstanding bonds, a buyback of shares or bonds or an acquisition or disposal of assets. The T2023-S$ Temasek Bond may be redeemed prior to maturity by the Issuer for taxation reasons. Astrea V is sponsored by Astrea Capital V Pte. of units, Total interest payments = Half-yearly interest payment x 2 = S$13.50 x 2 = S$27. … Yes, the interest amount is fixed at 2.70% per year. The market price of the T2023-S$ 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. Please also refer to the sections “Investment Suitability” and “Key Risks” (page 3 and 7 respectively) of the Product Highlights Sheet. up by about 3%.It’s Pillay’s first year at the helm. If the date falls on a weekend or public holiday, the payment is made on the following business day. Here’s a quick low-down of all you need to know about Temasek Bond T2023 so that we are on the same page when discussing about these bonds. I am sure you would have experienced it this month with a plunging stock market. Moody's Org ID: 806791556. Singapore Savings Bond 2019 Jan 2.90%pa – Should You Buy? Singapore Savings Bonds Aug 2018 – Up to 3.11%pa Interest. However, it is important that you consider these announcements as one data point, and that you make an effort to reach your own informed views about whether to buy, sell or hold securities, taking into account relevant information and your own personal circumstances, including risk tolerance. Just a few months after retail investors first gained investment access into private equity bonds, comes another first, Temasek’s T2023-S$ bond aimed at both institutional and retail investors in Singapore.. They may also apply via Internet banking or the mobile banking apps of DBS or POSB. There is no investment loss. Interest Rate Risk. Individuals can apply via the ATMs of DBS Bank, POSB, OCBC or UOB. If you are an investor and you are considering whether to buy, sell or hold a company’s bonds, keeping up to date on its corporate actions and announcements, including the company’s periodic disclosure of its financial performance, is one way for you to understand the company’s financial and business health, and to ensure that you are aware of the latest developments affecting the company. One can only conclude that the borrowings from T2023-S$ and T2028-US$ are used to supplement the cash outflow from their maturing USD Bond in 2019 and SGD Bond in 2020.    as provided in the terms and conditions of the bond, : S$200 million to institutional, accredited and other specified investors, : S$300 million to retail investors in Singapore, : S$1 per S$1 (being 100% of the principal amount). Electronic copies of the Offering Circular, Pricing Supplement and Product Highlights Sheet are available here and at the SGX-ST website under the “Prospectus / Circulars / Offer Documents” section under the “Company Information” tab. Otherwise, quoted prices are indicative of the bid or ask prices of the bond delayed by approximately 2 minutes, Quoted prices are ‘dirty’ prices on the Singapore Exchange, The bond will cease to trade after the last Record Date (18 October 2023), The Coupon Payment Dates, Settlement Dates and Record Dates are subject to the Ministry of Manpower’s declaration of public holidays in Singapore. To Speak To CDP Customer Service Officers It trades in board lots of S$1,000 in principal amount of the bonds. Shares of Keppel Corp sank yesterday, amid uncertainty over the fate of Temasek's $4.1 billion takeover offer for the loss-making conglomerate. I would love to invest in something that they are finally offering. Please see the table below for key information on the T2023-S$ Temasek Bond. Saturdays – 8.30am to 12pm 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$0.980 x 1,000)] x 100% = 2.76%, which is greater than the coupon rate of 2.70%. Application for a CPF Investment Account via a CPF Investment Scheme (CPFIS) agent bank:                                   [(Number of days in the 6-month interest period)/365 days of the year] x 2.70%, 1 board lot of the T2023-S$ Temasek Bond comprises S$1,000 in principal amount with the issue price being S$1 per S$1 in principal amount. The bonds may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons. Currently, a retail investor can only buy monthly Singapore Savings Bonds, trade exchange-listed SGS bonds and 9 corporate bonds (excluding perpetuals). The redemption amount at maturity will be 100% of the principal amount of the T2023-S$ Temasek Bond, regardless of its prevailing market value. First, they are borrowing less and second, they are paying less for borrowings. (Shin Min Daily News), Allocation Advertisement For those of you who are interested in the pricing mechanics used, you can read more about this in my article on Singapore Savings Bonds Coupons. Why is this so? 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. Economies around the world have strengthened and monetary stimulus have been withdrawn steadily. No, you cannot sell the T2023-S$ Temasek Bond through the ATM. Supplement dated 16 October 2018 and the Product Highlights Sheet dated 16 October 2018. The T2023-S$ Temasek Bond pays 2.7 per cent per annum and matures in five years in Oct 2023. Through one of the following bank services which your CPF Investment Account is with: Mobile Banking (using a valid Mobile Banking User ID and PIN), Making multiple applications under the Public Offer, Applying using a joint Central Depository (CDP) account, IC/Passport number differs in bank records and CDP records, Name differs in bank records and CDP records, Submission of a completed CDP securities account application form (available, Participating DCS banks in Singapore are: Citibank, DBS, POSB, HSBC, Maybank, OCBC, Standard Chartered Bank, UOB. SSB usually offers lower annualised yield than SGS bonds of similar maturities because it can be redeemed. The partnership between HSBC, SGX and sovereign wealth fund Temasek marks the first end-to-end digitisation effort focusing on the Asian bond markets. However, the temasek bond would be affected by rising interest rates. The SGS 5Y benchmark is 2.33% as of 17 Oct. You will be getting 0.48% pa more interest with Temasek Bond T2023 than SSB Nov 2018, or 0.37% pa more than SGS 5Y bonds. It is also not clear if there will be market making provided by Temasek for these bonds. Your refund would have been credited within 24 hours after balloting of the T2023-S$ Temasek Bond on 24 October 2018, in your designated bank account. 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. Secondary Market Purchases after Completion of Offer Ltd., an indirect wholly-owned subsidiary of Azalea Asset Management, which in turn is a wholly-owned subsidiary of Temasek. 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, 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 + $13.46 +13.54). To date, Temasek has been offering Temasek Bonds to institutional, accredited and other specified investors. For retail investors, the T2023-S$ Temasek Bond will be issued in denominations of S$1,000. 6 Things Singaporean Needs To Know About Temasek Holdings First Retail Private Equity Bond, Astrea IV. A plain vanilla bond, such as the T2023-S$ Temasek Bond, is typically for a fixed period, called the tenor, and for a fixed interest rate, called the coupon. Temasek prefers shorter term bonds in possible anticipation of higher short term interest rates. CPF Savings refer to your investible CPF Ordinary Account savings If interest rates rise, the market price of your bond may fall, in order to attract buyers who may have higher interest alternatives. 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 Please refer to the table below for the relevant charges for DBS/POSB, OCBC and UOB: S$2.50 per S$1,000 in principal amount of bonds, subject to a maximum of S$25 per transaction, S$2 per S$1,000 in principal amount of bonds, subject to a maximum of S$20 per transaction, S$2 per counter per quarter, subject to a minimum charge of S$5 per quarter, Please also refer to the relevant bank’s fee schedule for more information: DBS/POSB, OCBC, UOB. Please refer to the section “Risk Factors” (page 18) of the Offering Circular (available for download here) for a discussion of certain risks in connection with an investment in the T2023-S$ Temasek Bond. Central Depository (CDP) Application Form, Launch Advertisement It offers an annualised interest rate of 2.70%, higher than SSB Nov 2018 that offers 2.22%. 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). YTM = 5.37% Cash The price of the T2023-S$ Temasek Bond in the market may rise or fall, depending on various factors, including the interest rate environment. Please note the calculator takes into account the following assumptions of the T2023-S$ Temasek Bond (“bond”): The calculator is for your convenience only and you have chosen to use it and rely on any results at your own risk. The fixed interest rate of 2.7 per cent is payable every six months. SSB May 2020 offers up to 1.91% pa over 10 years. Market Segment: Corporates. Central Provident Fund (CPF) Savings One of the gripes people have about the Astrea IV was that that the Astrea IV was not issued directly by Temasek but is a structured product by the private equity subsidiary.. Selling your bonds will incur investment losses. You would need the following when applying to open a CDP securities account in person: (i)    Your original IC or passport The interest payments and principal amount of the T2023-S$ Temasek Bond are not affected by its price in the secondary market. When a company with listed securities undertakes a corporate action, it may have to make an announcement in accordance with the continuing disclosure obligations to which it is subject, in particular if the corporate action will materially impact the price or value of its securities. 355. Not suitable for EU retail. Once you have sold the T2023-S$ Temasek Bond, you will no longer own the bond and hence will not receive subsequent interest payments. Hotline HDFC Bank is India's largest private sector bank by assets. An issuer of a plain vanilla bond is basically promising you two things, in return for the money that you are lending to the issuer: (i)    First, it promises to repay you the principal amount when the bond “matures” at the end of its tenor. Generally, when market interest rates go up, the market price of bonds may fall, and vice versa. This is not a surprise given the flattening yield curve over the past year. December 8, 2020, 23:28 •. (ii)    Completed CDP securities account application form (available here). Please note that the offer of the T2023-S$ Temasek Bond has closed as of 23 October 2018. 05 Jun 2018. New bond issue: Temasek Holdings issued international bonds (XS2080786150) with a 1.25% coupon for EUR 500.0m maturing in 2049: 11/27/2019: New bond issue: Temasek Holdings issued international bonds (XS2080785343) with a 0.5% coupon for EUR 500.0m maturing in 2031: 09/23/2019 I have done some reading today and digested the bond information. The T2023-S$ Temasek Bond is included under the CPF Investment Scheme – Ordinary Account (“CPFIS-OA”). You may check the record date on SGXNET or Temasek’s website prior to each interest payment date. •  Saturdays: 8.30am to 12pm Live Pricing Chart Disclaimer   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] = $104. If the interest rates in the market are rising, newer bonds may be issued at higher interest rates. All dates and times are Singapore dates in times. Bonds Investments. •  Sundays and Public Holidays: Closed You may wish to consult your own investment, business, financial, legal, tax or other professional advisers prior to using the results of the calculator, or if you have any questions. See “How is the half yearly interest rate calculated?” above for more information. (Business Times), Allocation Advertisement : Fixed rate of 2.70% per year, payable every six months, : Wednesday 25 October 2023, redeemed at 100% of principal amount, Below, you will also see the 5-year interest rates offered by Temasek Bond T2023 vs Singapore Savings Bond issues and SGS Bonds traded prices over the last 6 months. Potential investors should understand the dynamics, risks and opportunities associated before investing in any product, such as the T2023-S$ Temasek Bond. If you had bought 1 board lot of the T2023-S$ Temasek Bond at a market price of S$1.08, you will receive a principal amount of S$1,000 (S$1.00 x 1,000) at maturity. For Singapore Savings Bonds, you will be able to redeem your investment plus any accrued interest whenever interest rates rise to immediately invest in higher yielding products elsewhere. The market price of the T2023-S$ 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. For a bond deemed of higher risk (usually because of the perceived or actual credit quality of the issuer), the interest rate is expected to be higher. However, HDFC has consistently outperformed by responsibly growing its user base in a country that still has millions of unbanked individuals, while also being disciplined in terms of which corporations and in… Yes, Temasek unconditionally and irrevocably guarantees all interest payments of the T2023-S$ Temasek Bond and full repayment of the principal amount at maturity, whether or not the bond was purchased during the offer or on the secondary market. To find out more about selling the T2023-S$ Temasek Bond in the secondary market, please refer to "Selling the T2023-S$ Temasek Bond". The firm’s dollar bonds due 2025 declined the most since they were sold in May, according to Bloomberg-compiled prices. Temasek does not guarantee the performance of the T2023-S$ Temasek Bond in the market. In the following paragraphs I will show you what I think. They have not issued bonds since 2016. 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. (Shin Min Daily News), Allocation Advertisement Temasek Bond T2023-S$ is Temasek’s first-ever SGD-denominated bonds that will be listed on SGX. You may also choose to look at other measures of returns for bonds, including: 2) Taking into account capital and interest gains. You must not reproduce, distribute, retransmit or disseminate any such information. The interest amount is fixed at 2.70% per year while 100% of the principal amount, and the last interest payment, will be paid on the maturity date (25 October 2023). (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. Mondays to Fridays – 8.30am to 5pm Where C = coupon payment; n = total number of 6-month interest periods; Bond face value = S$1,000 (* “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: Extremely low risk of default. If the shares return to their steadier state, the option is worth closer to S$1, leaving the value of the whole package a little below the sticker price. A CDP securities account is a securities investment account with the Central Depository of the Singapore Exchange (SGX). You will receive half yearly interest payments, for as long as you own the T2023-S$ Temasek Bond as of the record date for the relevant interest payment. Temasek Holdings (Private) Limited (“Temasek") has launched new five-year bonds through its wholly-owned subsidiary, Temasek Financial (IV) Private Limited (the “issuer”). The snapshot below of trading day 17 Oct shows that the total bond traded value was around S$478,000, which is only 0.1% of the Temasek Bond T2023 issue size of S$400-500 million. We reserve the right to make additions, deletions or modifications to the calculator at any time without prior notice. The amount of interest you will receive depends on the principal amount of the T2023-S$ Temasek Bond you hold. Please see the table below for key information on the T2023-S$ Temasek Bond. If the payment date is not a business day*, payment will be made the following business day. 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. Bondholders will have to be compensated for this ‘privilege’ (pay more to borrow). CPF Savings refer to your investible CPF Ordinary Account savings. No, you may only sell the T2023-S$ Temasek Bond in the secondary market. This is also great news for risk-adverse investors who are looking for quality bonds for investment. Pa through the ATM starts with learning modules on investment concepts, products and charges under CPFIS upon of. 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