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Strong demand for PSA and UBS issues

THE Singapore bond market is heating up again, with two deals launched on Wednesday that have been strongly received.

The initial price guidance for the PSA 10-year US dollar issue was the 10-year US Treasury (UST) plus 100 basis points (bps) area. The 10-year UST was quoted at 1.467 per cent on Wednesday morning.

The final price guidance is in the UST+80bps area (+/- 2.5bps) as the orderbook has exceeded US$2 billion, according to updated term sheet seen by The Business Times.

The expected size of the issue is US$500 million.

Market voices on:

Joint bookrunners for PSA issue are DBS Bank and HSBC.

Swiss bank UBS launched its second Singapore dollar perpetual issue in 12 months on Wednesday morning.

Initial price guidance for the  UBS issue was in the 5 per cent area.

The final price guidance was 4.85 per cent when orders went over S$3.4 billion, according to the updated term sheet seen by The Business Times.

In November 2018, UBS sold a S$700 million 5.875 per cent perpetual issue; and the orderbook was S$1.6 billion.

Joint lead managers for the latest UBS deal are UBS,  DBS Bank, Standard Chartered Bank and United Overseas Bank.