DBS' US$1b perp said to set benchmark for other Asian banks

Singapore

DBS' US$1 billion 3.3 per cent perpetual deal sold on Thursday has paved the way for other Asian banks looking to raise AT1 capital, said the bank's head of fixed income, Clifford Lee.

The trailblazer deal was notable for being Asia's first US dollar AT1 issue in 2020, and the coupon rate of 3.3 per cent is the lowest for any AT1 USD issue in the world. This beats the previous lowest coupon, also issued by DBS in 2016 that was 3.6 per cent. The third lowest coupon is United Overseas Bank's 3.875 per cent printed in 2017.