DBS perpetual securities offering 8.7 times subscribed

DBS Group Holdings has priced its issue of US$750 million perpetual securities at 3.6 per cent, the bank said on Wednesday morning. The securities are expected to be issued on Sept 7. They were 8.7 times subscribed, with an order book of close to US$6.5 billion.

The securities are issued under its US$30 billion global medium term note programme.

The distribution rate of 3.6 per cent a year will be reset on Sept 7, 2021, and every five years thereafter to a rate equal to the prevailing five-year US dollar swap rate, plus 2.39 per cent, DBS said.

The issue is the bank's first US dollar-denominated, Basel III compliant additional Tier 1 capital issuance.

The bank has the sole discretion to cancel any distribution on the securities, with unpaid distributions being non-cumulative.

The securities may be redeemed at the option of DBS in whole, but not in part, on Sept 7, 2021, or on any distribution payment date thereafter, subject to the prior approval of the Monetary Authority of Singapore.

DBS last traded at S$15.05.