DBS debuts US$ denominated securities

[HONG KONG] DBS Group Holdings is marketing its first US dollar-denominated Additional Tier 1 securities.

The Singaporean bank has announced initial guidance on the perpetual non-call five notes at a yield of around 4 per cent.

The notes, which will rank behind the lender's Tier 2 instruments and senior only to equity, are expected to be rated A3/BBB (Moody's/Fitch). They will reset in September 2021 to the then prevailing five-year US dollar swap rate plus the initial spread.

The securities will permanently write off when a loss-absorption event is triggered, or as determined by the Monetary Authority of Singapore.

DBS is sole global coordinator and also joint bookrunner with Citigroup, Deutsche Bank, HSBC and Societe Generale.

REUTERS