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DBS prices Swiss Re's S$350m 15-year notes at 3.125%
SWISS Re Finance (UK) will issue S$350 million in 15-year subordinated notes guaranteed by reinsurance giant Swiss Re.
The notes are NC5, which means they cannot be redeemed before the five-year mark.
DBS Bank on Thursday said the notes will carry a coupon of 3.125 per cent per annum, until the first optional redemption date of July 3, 2025.
The coupon will reset on the first optional redemption date and five years thereafter on July 3, 2030, to the prevailing five-year Singapore dollar swap offer rate plus a margin of 252.5 basis points.
The notes are scheduled to mature on July 3, 2035, subject to no solvency event occurring.
Australia and New Zealand Banking Group, DBS Bank, HSBC, and Standard Chartered Bank (B&D) are the deal's joint lead managers.
Investor interest in the issuance totalled more than S$1.4 billion across 85 accounts, with 75 per cent of orders coming from Singapore, according to deal statistics from DBS Bank.
Fund managers made up 34 per cent of the order book, followed by insurance firms at 30 per cent, and banks at 5 per cent, the deal statistics show.
Swiss Re is rated A2 by Moody's and A by S&P. Swiss Re Finance (UK)'s latest issuance is expected to be rated A3 by Moody's and BBB+ by S&P.
The notes will be listed on the Luxembourg Stock Exchange's Euro MTF platform.