DBS raises US$2 billion through US dollar bonds, term sheet shows
Asian investors made up nearly half of the offers, with 63% interest on the five-year floating rate tranche, led by fund managers and banks
[SINGAPORE] DBS Group, South-east Asia’s biggest bank, has raised US$2 billion through a multi-tranche US dollar senior bond issuance for general business purposes and to finance treasury activities, according to a term sheet seen by Reuters on Friday (Mar 14).
The issuance consists of two floating rate notes, raising US$1 billion and US$500 million with three-year and five-year tenors, respectively, along with a three-year fixed-rate note raising US$500 million, offering a coupon rate of 4.403 per cent.
Orders for both floating rate notes hit US$3 billion each, with the five-year tranche receiving the most demand from 179 accounts. Meanwhile, the three-year fixed-rate note garnered US$1.4 billion in interest from 102 accounts, according to the term sheet.
Asian investors accounted for nearly half of the offers, with interest from the region reaching 63 per cent on the five-year floating rate tranche, primarily driven by asset and fund managers, as well as banks.
“The positive momentum of the order book, which was more than three times oversubscribed, is an endorsement by investors of DBS’ robust and resilient franchise,” said Philip Fernandez, group corporate treasurer at DBS.
The notes were issued under DBS’s US$30 billion global medium-term note programme.
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DBS plans to use the proceeds for general purposes, as well as for finance and treasury activities, including providing intercompany loans and other forms of financing to DBS Bank Group, the term sheet showed.
DBS Bank was the sole global coordinator, joint book-runner, and lead manager, alongside BNP Paribas, Bank of America, RBC Capital Markets, HSBC, and others. REUTERS
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