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Thread: Temasek launches first retail bonds with 2.7% interest rate

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    Default Temasek launches first retail bonds with 2.7% interest rate

    What will most think will happen to Singapore Property price. Huat ah.


    SINGAPORE: Retail investors can now invest in Temasek Holdings’ bonds with the launch of its first public bond offer.

    The five-year notes, which will mature on Oct 25, 2023, offer a guaranteed fixed interest rate of 2.7 per cent, the Singapore state investment firm said on Tuesday (Oct 16). The interest rate will be paid at the end of every six months.

    The T2023-S$ Temasek Bond is issued through the firm’s wholly owned subsidiary, Temasek Financial (IV), and comes under Temasek’s S$5 billion Guaranteed Medium Term Note Programme.

    A total of S$200 million of bonds will be offered to the public and another S$200 million to institutional, accredited and other specified investors. The total offer size could be increased to S$500 million if the bonds are oversubscribed.

    The offer opened on Wednesday at 9am, and closes on Oct 23 at 12pm. The bonds are expected to trade on the Singapore Exchange on Oct 26.

    Retail investors can apply for the bonds at the ATMs of DBS, POSB, OCBC and UOB, or on the mobile banking apps of DBS or POSB. Offers must be in multiples of S$1,000, and are payable in full immediately.

    A Central Depository (CDP) account is needed to apply for the bond.

    Central Provident Fund (CPF) members can use up to 35 per cent of their CPF savings for bonds under the public offering.

    If the bonds are oversubscribed, applications from retail investors will be balloted and allocated, Temasek said. Unsuccessful applications will be refunded.

    Chief financial officer Leong Wai Leng said the bond offer will help Temasek to "broaden its stakeholder base and provide retail investors the opportunity to participate in another retail product".

    “We issue Temasek bonds as public markers of our credit quality – this is very much as part of our financial discipline as a long-term investor. They also increase our funding flexibility,” she added.

    The T2023-S$ Temasek Bond is rated Aaa by Moody's and AAA by S&P.


    Read more at https://www.channelnewsasia.com/news...nteed-10834938

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    [BEIJING] China's central bank is increasingly expected to cut the amount of funds banks need to hold as reserves next year as the government looks to funnel cash into an economy hit by slowing domestic demand and a trade war with the United States.

    That should help economic growth hold up in the face of both internal and external challenges, with a Reuters poll showing economists keeping forecasts for gross domestic product growth in 2018 and 2019 unchanged from a July poll.

    The median forecast of 73 economists Reuters polled was for GDP growth in the world's second-biggest economy to expand by 6.6 per cent in 2018 and 6.3 per cent in 2019.

    Since the last poll, China reported second quarter growth of 6.7 per cent, down slightly from 6.8 per cent in the third quarter, and GDP growth is expected to slow to 6.6 per cent and 6.5 per cent in the third and fourth growth quarters, respectively.

    Economists in the poll expect the People's Bank of China to keep the reserve requirement rate (RRR) steady for the rest of this year, but forecast a 1.5 percentage point reduction in the rate to 13 per cent by the end of 2019, a deeper cut than the 0.75 percentage point cut tipped in the July poll. The current RRR is 14.5 per cent.

    SEE ALSO: Indonesia's trade balance swings back to positive in Sept
    "We've seen some signs of slowing economic growth, but this year should be ok - it's been a soft landing," said Robin Xing, chief China economist at Morgan Stanley.

    "Everyone is focused on what policies will be implemented next year if downward pressure increases."

    China will publish third-quarter GDP and September activity data on Friday at 0200 GMT.

    Economic data over the past few months has shown faltering domestic demand, with record-low fixed asset investment growth, tepid expansion in industrial output and weaker growth in consumer spending.

    And as US President Donald Trump ramps up pressure on China's trade policies, Beijing has shifted to a loosening stance as it looks to backstop growth.

    The PBOC has cut reserve requirements for lenders four times this year, with the latest cut taking effect on Monday, pumping out more cash to stimulate bank lending.

    Beijing has also softened its stance on a campaign to reduce credit risks, pledged to speed up infrastructure investment, and increased tax rebates for exporters.

    Factory surveys for September showed growth sputtered, with export orders contracting.

    However, even with the expected moderation, China is expected to meet its goal of around 6.5 per cent growth this year.

    Exports have held up better than expected in the face of new US tariffs, though analysts say growth should slow in the future as the boost from firms ramping up shipments ahead of US tariffs weakens.

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    China's central bank late last month announced a steep cut in banks' reserve requirements, stepping up moves to lower financing costs and spur growth amid concerns over the economic drag from an escalating trade dispute with the United States.

    With more funds flowing into the economy, economists now expect inflation to pick up through the end of 2019, compared with a forecast for slowing inflation in July.

    The 2018 median consumer price inflation forecast rose to 2.2 per cent from 2.1 percent, while economists now expect 2019 inflation to be 2.4 per cent, versus a 2.2 per cent forecast in July.

    Most economists expect China to keep its benchmark lending rate unchanged at 4.35 per cent through to the end of 2019, as the central bank focuses on other monetary policy levers, such as interbank rates. The PBOC last moved its benchmark policy in October 2015, easing rates.

    https://www.businesstimes.com.sg/gov...th-risks-build

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