DBS prices SocGen's S$750m fixed rate resettable notes at 6.125%

DBS Group Holding's pricing of a S$750 million deal for Societe Generale has so far seen demand for S$1.55 billion of the bonds at the reoffered price, the book runner said on Wednesday.

Out of the order book, about 85 per cent were from Singapore investors, while 15 per cent were from international investors, said DBS. Private banks took up 81 per cent of the deal, followed by fund managers with 11 per cent and bank and corporate investors at 8 per cent.

The day before, DBS had priced the undated fixed rate notes for French bank Societe Generale at a coupon of 6.125 per cent. The notes are to be sold at 100 per cent of the principal amount.

The deeply subordinated additional Tier 1 fixed rate resettable callable notes have an undated maturity. Coupon payment is also fully optional, limited to distributable items and subject to the maximum distributable amount.

Societe Generale will have a call option to redeem the notes in the fifth year on April 16, 2024, and every five years after at the current principal amount, subject to regulatory approval.

The 6.125 per cent coupon will be fixed to the first call date and is payable semi-annually. It will then reset to the prevailing five-year Singapore dollar swap offer rate plus 420.7 basis points at the first call date, and every five years after with no step-up, payable semi-annually.

The bonds are sold under Regulation S, and sections 274 and/or 275, chapter 289 of the Securities and Futures Act of Singapore. They are restricted for sale under Regulation S in the United States, China, Japan, Switzerland, Hong Kong, Taiwan, Singapore, Australia, the European Economic Area (EEA) and jurisdictions within the EEA.

The joint book runners for the deal are Societe Generale, DBS Bank, Standard Chartered Bank and UOB.