SINGAPORE: Temasek Holdings is exploring ways to offer bonds to retail investors in Singapore.
In response to a letter in TODAY newspaper, Temasek’s managing director of corporate affairs Stephen Forshaw said this will provide an alternative investment opportunity for those seeking stable returns with lower risks.
The investment firm is looking into how to make it practical and efficient to offer bonds to retail investors.
Mr Forshaw said the firm will share details when ready.
According to its latest annual report, Temasek’s bonds have received the top rating from Standard & Poor’s Ratings Services and Moody’s Investors Service since 2004. Its bonds are usually offered to institutional investors.
The firm’s total shareholder return had averaged 16 percent since its inception in 1974. The firm is mostly invested in stocks and shares of companies.
Temasek said it invests for the long term and the total market value of its portfolio can rise or fall by 30 per cent or more, during volatile periods such as the global financial crisis.
“We are mindful that past opportunities and conditions are not likely to repeat in the coming decades. Furthermore, global structural risks remain,” added Mr Forshaw.
Temasek Holdings started issuing bonds in 2005 with 4.5% coupon rate. Thirteen series of bonds have been released so far and the average coupon rate is 4.09% (min at 2.375%, max at 5.375%). The average tenor was 21 years (min at 10 years, max at 40 years).
Information on Temasek Holdings’s bonds can be found at here (http://www.temasek.com.sg/investorrelations/temasekbonds).