DBS prices green bonds at quarterly coupon of three-month US$ Libor + 0.62%

DBS Group Holdings (DBSH) said on Wednesday that it has successfully priced the issue of US$500 million floating rate green bonds due in 2022.

The bonds, which come under its US$30 billion Global Medium Term Note Programme, will bear a quarterly coupon of three-month US$ Libor (London Interbank Offered Rate) + 0.62 per cent. They are expected to be issued on July 25.

DBSH said that the bond issue was well received, allowing "the final price guidance to be tightened meaningfully, and achieving a very compelling pricing level for a five-year benchmark deal".

The net proceeds from the issue will be used for DBSH's finance and treasury activities. These include the provision of inter-company loans and other forms of financing to DBS Bank and its subsidiaries.

Proceeds will be allocated towards the financing of green projects or assets fitting the eligibility criteria in the DBS Green Bond Framework - the first of which is expected to be the funding of Marina Bay Financial Centre Tower 3, a commercial property in Singapore certified Green Mark Platinum by the Building and Construction Authority.

DBS Bank is the sole global coordinator and joint bookrunner with Credit Agricole, HSBC, ING, Natixis, Societe Generale and Wells Fargo Securities.