This is the first time Temasek has offered a 5-year bond, T2023-S$, which will be listed on the SGX and made available to the public. The offer is up to S$400 million, with potential upsize to S$500 million if oversubscribe. The bond has an interest rate of 2.70% per annum payable semi-annually. Applications must be in multiples of S$1,000 with minimum of S$1,000.

For comparison, a 10-year Singapore Savings Bond has an average interest rate of 2.48%, and a 5-year Singapore Savings Bond is 2.22% for November 2018 issue. This makes the Temasek Bond much more attractive than the Singapore Savings Bond. The logical thinking will be to redeem all our Singapore Savings Bond and buy the Temasek Bond. But note that there is only S$400 million, or S$500 million if oversubscribe, for subscription which includes institutional placement, accredited investors and public. The public tranche is only up to …