The state-linked Singapore investment company's bonds were issued by Temasek Financial Ltd, a wholly-owned subsidiary, and form part of a $5 billion medium-term note program, a press statement said.

Temasek's first foray into the debt market in its 31-year history comes amid an investment binge in key companies, especially in China.

It now has a global investment portfolio worth US$54 billion in a wide range of industries and controls some of Asia's most profitable companies including Singapore Airlines and Singapore Telecommunications.

The bonds, which offer an annual rate of 4.5 percent, have already been fully taken up by investors, Temasek spokeswoman Eva Ho said.

"This bond offering helps us to enhance capital efficiency and increase our funding flexibility," Ho told AFP. She said the funds raised will be used for "general corporate purposes" but did not elaborate.

The bonds are fully and unconditionally guaranteed by Temasek Holdings.

Analysts said it was a good move by Temasek to raise funds from the debt market when global interest rates are regarded to be at still very low levels.

"The opportunities presented in the region, particularly with the investments in China ... I think it is good timing when global interest rates are relatively low," said Chua Hak Bin, a senior regional economist with DBS Bank in Singapore.

Chua said the bond issue also showed Temasek was moving towards utilising its capital resources more effectively.

"It reflects probably a more deliberate strategy of more capital efficiency," he said.

Leading global credit rating agencies had earlier given top marks for Temasek's widely anticipated bond issue, reflecting the company's underlying financial strength.

Standard and Poor's, which gave its highest possible rating of AAA for the $5 billion program, said Temasek boasts "strong, and sometimes dominant, market positions in most business segments."

"The rating on Temasek continues to reflect its leading positions in most business segments, its high degree of investment diversity and liquidity, its above average consolidated financial profile, and its exceptionally strong flexibility as a holding company," S and P analyst Greg Pau said.

The AAA rating means a borrower has an extremely strong capacity to meet its financial commitments.

Moody's Investors Service took a similar line with its top rating of Aaa.

In August, Temasek paid US$3.1 billion for a 10 percent stake in the Bank of China after having agreed to purchase US$1 billion worth of shares in China Construction Bank during its public sale.

Media reports said that in its offer documents sent out to investors Monday, Temasek reported an annual four percent rise in profits of US$4.58 billion in the year to March 2005.

Temasek had never released its annual report until last year when the state-linked company declared a net profit for the year to March 2004 of US$4.4 billion.

The once secretive company has started to reveal more about its operations since former senior civil servant Ho Ching, the wife of Prime Minister Lee Hsien Loong, was appointed as executive director in 2002.

Singapore, armed with almost US$120 billion in reserves, is expanding its foreign acquisitions due to a mature domestic market.

Another state-linked investment firm, the Government of Singapore Investment Corp., last week bought the landmark Intercontinental Hotel Paris for US$392 million in cash, the latest trophy in a global property portfolio.

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