[HONG KONG] DBS Bank began marketing Singapore's first offering of US dollar benchmark covered bonds of three years at an initial price guidance of around 40bp over mid-swaps.
Bayfront Covered Bonds will guarantee the 144A/Reg S issue, expected to score ratings of Aaa from Moody's and AAA from Fitch.
DBS is the first issuer in Singapore to set up a covered bond programme after the local regulator tied up final changes to the rules related to the instrument. It is also the first issuer from South-East Asia to sell covered bonds in the offshore market.
Last month, DBS met investors in Asia, Europe and the US to introduce its newly established US$10 billion global covered bond programme, which has expected ratings of Aaa from Moody's and AAA from Fitch.
The Singapore lender has mandated itself, Deutsche Bank, JP Morgan and Societe Generale as joint global coordinators for the debut covered bonds.
Barclays and Citigroup are bookrunners.