Credit Profile

Our Credit Profile provides a quantitative snapshot of our credit quality and the strength of Temasek’s financial position.

Dividend Income over Interest Expense (×)

19x

Dividend Income

Recurring Income over Interest Expense (×)

69x

Dividend Income

Recurring Income over Total Debt due in One Year (×)

21x

Dividend Income

Liquidity Balance over Total Debt due in next 10 Years (×)

5x

Dividend Income

Net Portfolio Value over Total Debt (×)

21x

Dividend Income

Liquid Assets over Total Debt (×)

7x

Dividend Income

As an investment company, our dividend income and divestment proceeds are used to pay our business expenses, interest to bond investors, dividends to our shareholder; repay bonds which are due; and make investments.

Last year, Temasek earned S$7 billion in dividend income and divested S$18 billion. These amounts formed the bulk of our cash inflows.

Unlike pension funds or oil funds, we do not have inflows from pension savings or oil revenues.

Our dividend income for the year ended 31 March 2017 was about 19 times our interest expense.

Temasek had S$12.8 billion of debt outstanding as at 31 March 2017, with S$7.7 billion due within the next 10 years.

Temasek’s cash and cash equivalents, plus short term investments, as at 31 March 2017, were five times our S$7.7 billion debt due within the next 10 years.

Key Credit Parameters (in S$ billion)

For year ended 31 March 2013 2014 2015 2016 2017
Divestments 13 10 19 28 18
Dividend income 6.4 7.9 7.9 7.8 7.0
Income from investments 0.1 0.1 0.1 0.2 0.2
Interest income 0.1 0.1 0.1 0.2 0.2
Interest expense 0.5 0.5 0.5 0.4 0.4
Net portfolio value 215 223 266 242 275
Liquid assets 76.5 80.3 90.6 74.3 91.1
Liquidity balance 33.3 29.9 26.7 27.1 37.6
Total debt 14.6 14.2 13.8 12.9 12.8