Singapore's Temasek greenshoe partially exercised, lifting 0% exchangeables to S$790 million

By Marisa Wong

Madison, Wis., Oct. 21 - Temasek Holdings (Pvt.) Ltd. subsidiary Temasek Financial (III) Pvt. Ltd.'s recent offering of zero-coupon guaranteed exchangeable bonds due 2014 was increased to S$790 million through the partial exercise of the over-allotment option, according to a press release.

Manager Bank of America Merrill Lynch decided to subscribe for an additional S$140 million of the bonds.

Temasek Financial priced S$650 million of the bonds on Oct. 17 at par with a S$150 million greenshoe. Settlement is expected on Oct. 25.

The Singapore investment company sold the securities to institutional investors.

As previously reported, the bonds are exchangeable for ordinary shares of Standard Chartered plc. Temasek Financial said it will have the option to settle any exchange exercise in cash.

The initial exchange price is S$36.2912, which is a 27% premium over the Oct. 17 closing price of £14.29 per Standard Chartered share, converted at an exchange rate of 1.9997 Singapore dollars per pound sterling.

Proceeds will be used to fund business costs.

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