Temasek issues second exchangeable bond in two months

Temasek Holdings returned to the equity-linked markets last night, raising S$500 million $390 million worth of bonds exchangeable into Hong Kong-listed Li Fung. The deal came less than two months after the Singapore investment company sold S$800 million worth of exchangeable bonds EB into Standard Chartered and was clearly designed to take advantage of the strong demand for that first transaction.

This latest EB has a similar structure, including a blue-chip underlying and a zero percent coupon and yield, but it matures in just two years compared to three years for the earlier deal. It also has a higher premium and sources said last night that the pricing was a...