Keppel self-issues first tranche of US$1b Euro-commercial paper programme on DBS FIX Marketplace
KEPPEL Corporation BN4 on Thursday self-issued its first three-month commercial paper on fixed income execution (FIX) platform DBS FIX Marketplace, representing the first tranche of its US$1 billion digital Euro-commercial paper programme, DBS D05 said in a press statement on Friday.
The issuance is the first on DBS FIX Marketplace - Asia's first fully digital and automated FIX platform where issuers can directly connect with investors - and "paves the way for more digital issuances and furthers efforts to digitalise bond markets", DBS said.
The transaction was fully automated from end to end, with Keppel digitally connected to investors, and investors directly subscribing to the commercial paper on the platform.
DBS global head of fixed income Clifford Lee said: "With FIX Marketplace, we aim to empower issuers to directly engage the market and investors on our platform, thereby making the process more efficient in terms of time and cost."
He added: "This brings us another step further along the way to digitalise the bond issuance process, while driving greater transparency and issuance volumes to deepen the market further."
The issuance of the S$50 million commercial paper, which offers investors 0.55 per cent per annum interest over three months, saw "strong reception and was quickly snapped up within a few hours of launch" by investors including insurance companies, asset managers, corporates and private banks, the bank noted.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Proceeds from the commercial paper will be used by Keppel for general corporate and working capital purposes. Keppel's director of group treasury Lynn Koh said: "We look forward to further our collaboration with DBS and various industry partners through the FIX Marketplace, as well as other initiatives that will contribute towards building more vibrant capital markets for both providers and seekers of funds."
Keppel is the first corporate issuer to have its US$1 billion Euro-commercial paper programme digitalised for issuances under the FIX Marketplace, and has appointed DBS the sole arranger and dealer of the programme.
The platform is also "an important building block for DBS in its journey to digitalise Asia's capital markets", and can be further built upon to expand digital bond offerings through the members-only DBS Digital Exchange, the bank said.
READ MORE
Copyright SPH Media. All rights reserved.
