Asked by Anonymous
Asked on 18 Oct 2018
Seedly has an article about the Temasek Bond Offer. https://blog.seedly.sg/temasek-holdings-corporate-bond-issue-subsidary-temasek-financial-iv-private-limited/
You may wish to note a bond of such quality and interest yield is usually open only to instituional investors only and usually in large denominations. This bond issue is denominated in $1000 and is easily within reach of most retail investors. You can almost think of the 2.7% interest as guaranteed given Temasek's credit rating. Also take note that you can also arbitrage your CPF OA's interest rate of 2.5% and earn an extra 0.2% if you pretty sure you won't need that sum in your OA in the next 5 years. Having said that, the bond can still be sold on SGX but its price is subjected to changes depending on interest rates.
23 Oct 2018