Singapore state investor Temasek Holdings (TEM.UL) is looking to sell sterling-denominated bonds, its first issue in the British currency, to diversify its funding sources, people with knowledge of the deal told Reuters.

Temasek plans a benchmark issue, industry jargon for an issue equivalent to at least US$500 million ($690 million), and is in the process of sounding out potential investors through UBS (UBSN.VX), Deutsche Bank (DBKGn.DE) and HSBC (HSBA.L), the sources said.

Temasek and the banks declined to comment.

“They see sterling as an additional pool of capital for them,” said one of the sources who spoke to Reuters. “They want to create a yield curve in different currencies.”

Temasek has sold bonds worth Us$6 billion under its existing US$10 billion medium-term note programme, mostly in the Singapore and US dollar, according to its annual report released earlier this month.

Its bonds have a weighted average maturity of 13 years and are rated AAA by both Moody’s and Standard & Poor’s.

Its biggest investment in the United Kingdom is Asia-focused Standard Chartered (STAN.L) in which it has a stake of about 18%.

Temasek, which manages a portfolio worth $186 billion at end-March, has distanced itself from speculation that it could invest in BP (BP.L), which has approached several sovereign wealth funds for cash to ward off a takeover and help pay for the worst oil spill in US history.