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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.