A whopping $500 million 10-year bond has been sold by Singapore Technologies Engineering on Thursday, at 150 basis points over the U. S. Treasuries, tighter than initial price guidance.

The agreement is an unusual AAA-rated corporate offshore bond out of non-Japan Asia. As per the Thomson Reuters' figures, in the year 2006, the previous agreement with a top rating was from Singapore's PSA Corp, which was rated Aaa by Moody's Investors Service.

Deutsche Bank and Morgan Stanley managed the bond.

The issue has a coupon of 4.8 percent and an issue price of 99.404, via the company's wholly-owned subsidiary, ST Engineering Financial 1 Ltd.

According to a source close to the deal, the Initial guidance was for a yield of 160-170 bps over U. S.

It should be noted that Singapore Technologies Engineering has been rated AAA by Standard & Poor's, and state investor Temasek Holdings has more than a 50 percent stake in it.

The agency said: "The AAA rating on STE reflects Standard & Poor's opinion that there is an extremely high likelihood that the government of Singapore would provide timely and sufficient extraordinary support to STE in the event of financial distress."

The engineering conglomerate said on Monday that to finance future investments, it hoped to increase $1.2 billion value of medium-term notes in various currencies, including acquisitions and debt refinancing.