Singapore ST Engg to sell 10-yr dlr bonds -source

HONG KONG, July 9 (Reuters) - Singapore Technologies Engineering (STEG.SI) will sell 10-year dollar bonds at around 160-170 basis points over U.S. Treasuries, a source close to the deal said on Thursday.

The deal, managed by Deutsche Bank and Morgan Stanley, is likely to be priced during London trading hours on Friday.

The issue, done via its wholly-owned subsidiary, ST Engineering Financial I Ltd, will be of a benchmark size.

Singapore Technologies Engineering, 49-percent owned by state investor Temasek Holdings [TEM.UL], has been rated AAA by Standard & Poor's.

On Monday, the engineering conglomerate said it aimed to raise $1.2 billion worth of medium term notes in various currencies to fund future investments, including acquisitions and debt refinancing. (Reporting by Saeed Azhar and Umesh Desai; Editing by Jacqueline Wong)