Just read the news about Temasek issuing out bonds.?

They could be using the funds for several reasons. Firstly, could be for normal day-to-day operational expenses. Secondly, they could be borrowing money to finance other investments. Eg. if they can borrow money at 1% and finance an investment deal that yields 5%, then they make the difference. Issuing debt is a very efficient and affordable way of boosting returns.

Temasek bonds are NOT governement bonds, they are more like quasi-soveregin bonds (linked to the government). As such, these temasek bonds are issued with a spread (the addtional yield temasek has to pay investors for credit risk). That being said, these bonds are rated AAA so likelihood of default is close to nil.