DBS prices US$1.5b covered bonds due 2027 at 2.375 %

DBS D05 on Friday (Mar 11) announced that it has priced US$1.5 billion worth of fixed rate covered bonds due 2027.

The covered bonds will bear a fixed-rate coupon of 2.375 per cent per annum, payable semi-annually in arrear.

The securities are expected to be issued on Mar 17 under the bank's US$10 billion global covered-bond programme, and will mature on Mar 17, 2027.

Issued in denominations of US$200,000 and US$1,000, the 5-year fixed rate issue is said to be Asia's largest US dollar covered bond.

Net proceeds from the issue will be used for the general business purposes of DBS and its consolidated subsidiaries.

The covered bonds are expected to be rated AAA by Fitch Ratings and Aaa by Moody's Investors Services.

DBS was the sole global coordinator; the joint lead managers were DBS, Barclays Bank, ING Bank, JP Morgan Securities, RBC Capital Markets, Société Générale and Wells Fargo Securities.

The covered bonds have been offered to certain non-US investors outside the United States and to qualified institutional buyers within the United States, said DBS.

An application will be made to list and quote the securities on the Singapore Exchange.

Shares of DBS ended Friday at S$33.26, up S$0.37 or 1.1 per cent.